AL Circle Analysis: Aluminium’s recycling economics, trade walls and carbon rules converge
The story of the aluminium industry is starting a chapter wherein scrap availability, recycling technology, trade policy, carbon costs and demand growth are becoming increasingly interconnected. From the US and Canada to Europe, India, New Zealand and China, recent developments show that the global aluminium supply chain is being reshaped on several fronts at once. These developments point to a changing aluminium business model: access to metal alone may no longer be enough. Quality of recycled feedstock, domestic processing capacity, carbon intensity, trade exposure and the ability to meet increasingly specific customer requirements could become equally important competitive factors. Join the fourth edition of the webinar “Hedging for recyclers - Become an expert in 6 hours” by Jorge...
Europe holds 10% of global aluminium extrusion demand, supported by Germany’s Constellium, France’s Hydro Extrusions & Italy’s Metra
Across Europe, aluminium extrusion has become closely woven into some of the region’s biggest industrial and construction markets. From automotive and transport to buildings and industrial applications, extruded profiles are finding demand across a wide range of sectors. This is reflected in Europe’s position in the global market: the region accounted for 12 per cent of global aluminium extrusion capacity, making it the second-largest regional contributor after China. At the same time, Europe represented 10 per cent of global aluminium extrusion usage, out of total global usage of 35.35 million tonnes . With production capacity and usage shares relatively close, Europe’s extrusion capacity and consumption are broadly at par. If we break down Europe’s 10 per cent share of global aluminium...
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Jaguar F-Pace featuring aluminium architecture launched in Bahrain
Euro Motors Jaguar Land Rover, the exclusive distributor of Jaguar vehicles in Bahrain, has launched Jaguar F-Pace with an exclusive aluminium architecture, the British automaker's first SUV, in the kingdom on May 9. The launch event was attended by British Ambassador to Bahrain Simon Martin, Euro Motors Jaguar Land Rover managing director Nawaf Khalid Al Zayani, VIPs, senior company officials and invited guests. The all-new Jaguar F-Pace is a practical sports car and the most important launch in the brand history. It delivers an unparalleled driving experience, an official said. Designed, engineered and manufactured in the UK, it has undergone thorough regional testing at Jaguar Land Rover’s Engineering Test Centre in Dubai. Developed using Jaguar’s lightweight aluminium architecture,...
Die casting company executing $6.3 mln expansion in Maple Lake
A multimillion-dollar expansion is in the works for an aluminium die casting and other metal die casting operation in Maple Lake. According to the State Department of Employment and Economic Development, Arkansas based Pace Industries will add 60,000 square feet at its Maple Lake facility. Part of the $6.3 million expenditure will be funded by the department’s Job Creation Fund, which will contribute nearly $168,000. Pace Industries is an integrated company that provides quality die casting, manufacturing and engineering solutions worldwide. It supplies customized engineering tool & die making aluminum die casting, magnesium die casting, and zinc die casting and finishing solutions to automotive and trucking, recreation vehicles, lighting and electricals, medical devices, and aerospace...
Kobe Steel to build aluminium extrusion and fabrication plant in Kentucky, USA
Kobe Steel, Ltd. announces that it will manufacture and sell aluminium extrusions for the automotive sector in the United States. The new business will operate through a company called Kobelco Aluminium Products & Extrusions Inc. in Bowling Green, Kentucky. KPEX will make bumper materials for cars and car frame materials. The new company will have an integrated production facility, with operations ranging from melting to fabrication. Plans call for construction of the plant to begin this summer. Fabrication will start in the latter half of 2017, and the melting to extrusion processes will begin in the latter half of 2018. Total investment is expected to reach $46.7 million, and KPEX is anticipated to create 110 jobs. North America is the world's second largest automotive market and car...
Rusal warns on China aluminium restarts as smelters plan fund to ease closures
Russian aluminium giant Rusal warned against Chinese smelters restarting plants to keep from undermining prices that have retreated from 2016 highs as Chinese producers consider launching a fund to deal with the layoffs from closures. Global aluminium prices that rebounded to nine-month highs last month have enticed some Chinese smelters that closed in the past year amid overcapacity in the sector to resume production. But, while analysts say the restarts have been slow, producers fear they could weigh on prices again. China is the world's top consumer and maker of aluminium. Chinese producers should continue to keep their discipline towards production to "ensure gradual improvement in prices and profitability," Rusal's Deputy Chief Executive Oleg Mukhamedshin told an industry conference...
Indonesia also on Nalco's radar to set up aluminium smelter
Aluminium maker national Aluminium Corporation (Nalco) is also scouting for locations in Indonesia to set up a five lakh tonnes per annum smelter as it eyes to rationalise cost of operations and cater to the expected rise in demand. The government had earlier hired consultants to scout for locations for establishing a five lakh tonnes greenfield aluminium smelter and a power plant, where energy is available at competitive prices, a source said. "Based on the study conducted by the consultants, Nalco has identified Oman and Indonesia. Iran is another country that has come up after the US lifted sanctions against it. Nalco CMD T K Chand also met top Iranian officials last month over this," the source added. A senior government official confirmed the development, saying the government has...
Vehicle weight savings of 220lbs gives Cadillac customers better vehicle performance
Novelis, the world leader in aluminium rolling and recycling, today announced its aluminium is used in the new 2016 Cadillac CT6 body. The new mixed material vehicle construction featured in the Cadillac CT6 represents a first of its kind for General Motors (GM) in North America and China. In North America, Novelis' plant in Kingston, ON will supply GM's Detroit-Hamtramck plant in Detroit, Michigan. Novelis' plant in Changzhou, China will supply GM's Shanghai plant, which will produce the CT6 manufactured locally in China. The Cadillac CT6 features a body made of 62 percent aluminium. Through the use of aluminium and advanced joining techniques, Cadillac has achieved significant weight savings, making the full-size Cadillac CT6 luxury sedan comparable in weight to the smaller midsize...
Novelis Q4 and full-year 2016 results: Productivity and automotive sheet shipments increase driving growth
Novelis, the world leader in aluminium rolling and recycling, yesterday reported net income of $29 million for the fourth quarter of fiscal year 2016. Excluding tax-effected special items, the company reported net income of $50 million in the fourth quarter of fiscal 2016, a 35 percent increase over the prior year period. For fiscal year 2016, the company recorded a net loss of $38 million. Excluding tax-effected special items, net income was $131 million for the full year. "We ended fiscal 2016 with strong operational performance globally, enabling us to achieve record total shipments and automotive sheet shipments for the year," said Steve Fisher, President and Chief Executive Officer for Novelis. "This volume growth and our portfolio management strategy translated into our highest full...
Irish schools full of bright ideas in tea light recycling competition organized by Alupro
A campaign launched late last year to encourage children in the greater Dublin to seek out used tea lights for recycling and to let their creativity shine with a recycling-themed colouring competition was a huge success, according to organisers Alupro Ireland. The competition, which ran until the end of January 2016, in conjunction with IKEA, WEEE and co-financed by EAFA, the European Aluminium Foil Association, attracted 1,600 very colourful competition entries. Representatives from the winning school, Hedgestown National School in Lusk, plus the age category winners attended a special ceremony at IKEA in Dublin to collect their prizes. EAFA’s executive director Guido Aufdemkamp also attended to see the entries and congratulate the winners. Both Alupro Ireland manager Karen Mahon and...
Alba sponsors 21st CRU World Aluminium Conference
Aluminium Bahrain B.S.C. (Alba), one of the world’s leading international aluminium smelters, was a key sponsor of the Commodity Research Unit (CRU)’s 21st World Aluminium Conference that took place from 9 to 11 May 2016, at the Westin Bund Hotel, Shanghai, China. Alba’s Chief Executive Officer Tim Murray and Chief Marketing Officer, Khalid Abdul Latif along with key members of the Company attended this three-day event. In his opening address at the welcome reception, Alba’s CEO Tim Murray said: “As the aluminium market stands at a crossroad, we believe that there is an ample growth opportunity for aluminium as a metal in the future on the back of strong market fundamentals. With that in mind, we are much excited to embark on Line 6, Alba’s latest brownfield expansion project, which will...
Australian Bauxite hits payday for bauxite shipment
ASX-listed Australian Bauxite (ABx) is hoping to ship its second batch of bauxite from the Bald Hill mine, in Tasmania, within the next two months. The miner said on Tuesday that full payment had now been received for the maiden cargo of 5 557 t of cement-grade bauxite that left Tasmania in April this year, concluding the first sale of bauxite from the mine. The second shipment of between 30 000 t and 40 000 t was progressing, with a large stockpile site in the receiving port being set up to receive the bauxite. ABx said that, while the sales price for the second shipment was "satisfactorily profitable", it remained confidential. The continuing sales of cement-grade bauxite would allow ABx to continue to fund its growth from revenues, including research and development to allow the...
Hydro and Vale end negotiations for 40% interest in Brazilian bauxite producer MRN
Hydro and Brazilian mining company Vale has ended negotiations on the possible acquisition of Vale's 40 per cent interest in Brazilian bauxite producer Mineração Rio do Norte (MRN). The two companies entered into a letter of Intent (LoI) regarding the possible transaction in October 2015, but have not been able to agree on commercial terms. Hydro will continue to own 5 per cent of MRN, as well as to purchase bauxite from Vale under commercial agreements entered into in 2011. Hydro acquired Vales' other Brazilian aluminium assets in 2011, including the 57 per cent interest in the Alunorte alumina refinery, the Paragominas bauxite mine, a 51 per cent interest in the Albras smelter, and their 61 per cent interest in the CAP alumina refinery project, all located in the state of Para. The 2011...
Eicher Motors charts strong sales growth despite aluminium and steel price volatility
In an industry where volumes matter the most, the rest tend to follow. Going by the March quarter numbers, Eicher Motors seems to be perfecting this art better than peers such as Bajaj Auto and TVS Motor Company. Led by strong sales growth in its Royal Enfield offering and commercial vehicles in the March quarter, consolidated revenues at INR 3,765 crore shot up 47 per cent year-on-year. From a year-ago level of 14.2 per cent, consolidated operating margin has risen to 17 per cent in the March quarter even as cost of goods sold (raw materials such as aluminium and steel products, purchased goods, inventories consumed) climbed up by 46 per cent year-on-year in line with revenue growth. Strong volume growth of over 57 per cent (operating leverage) has helped Eicher boost its margins;...
18th Global Foundry Sourcing Conference 2016 was successfully held in Shanghai
The 18th Global Foundry Sourcing Conference 2016, China Casting Exporting Conference and China Foundry Conference were successfully held at Shanghai Everbright Int’l Hotel during April 20-21. Organized by Suppliers China Co., Ltd., and co-sponsored by National Technical Committee 54 on Foundry of Standardization Administration of China, the event was aimed at building a procurement negotiation, market analysis, technical communication platform for foundry industry. The conference attracted more than 600 delegates at home and abroad. At the backdrop of weak demand for castings, FSC prepared an academic activity based on the demand of China casting export enterprises during the 18th Global Foundry Sourcing Conference, invited industry senior experts, multinational buyers, and casting...
4th Automotive Lightweight Supply-Chain Symposium will lead up to DIECATING CHINA EXHIBITIONS in Shanghai
The 4th Automotive Lightweight Supply-Chain Symposium will be kicked off on the 11th of July 2016 in the days leading up to the DIECATING CHINA EXHIBITIONS in Shanghai, China. Different from other Chinese Lightweighting conferences, the AluMag Symposium focuses on supplier development, process and supply chain, procurement with intensive discussions with more international attendees under a much closer but also a warm atmosphere. Attendees will enter a tight network of lightweight supply-chain executives from all of the world. Around 77 per cent of the attendees are managers and executives. The symposium is accompanied by a small lightweight technology exhibition and three receptions will be held during the three day event to offer a perfect setup to interchange with the domestic as well...
NSW 'cash for cans' recycling scheme likely to dent soft beverage sales by 10%
A New South Wales government plan to reduce litter volume by imposing a small deposit on drinks could dent sales of soft drinks, fruit juice and bottled water by almost 10 per cent, observed market watchers. Under the container deposit scheme, which comes into effect in July 2017, commercial drink containers- aluminium cans, glass bottles, tetra pack- between 150 millilitres and three litres will be redeemable for 10¢ each at depots and reverse vending machines. The scheme will be paid for by beverage manufacturers, including Coca-Cola Amatil, Asahi/Schweppes, Carlton & United Beverages and Lion Co, which owns juice maker Berri. They plan to pass the cost of the 10¢ deposit and the cost of administering the scheme onto consumers by raising prices by between 15¢ and 20¢ per container....
NALCO allotted Utkal-D & E coal mines
The Government of India vide Allotment Order dtd. May 02, 2016 have allotted Utkal-D & E Coal Mine in favour of National Aluminium Company Ltd (NALCO). The Allotment Order was issued by the Office of Nominated Authority, Ministry of Coal on behalf of Govt, of India. All the rights, title and interest in and over the land and mine infrastructure of both Utkal-D & E Coal Mines shall stand fully and absolutely transferred and vested in the allotee i.e. NALCO. Shares of NATIONAL ALUMINIUM CO.LTD. is seen trading at INR 42.65 as compared to the previous close of INR 42.8 down 0.2 per cent in BSE. In NSE, the stock has gained 0.5 per cent from a previous close of INR 42.3, and is trading today at INR 42.85.
Chalco has no plans to restart aluminium capacity shut last year - president
Aluminum Corporation of China Ltd (Chalco) has no plans to restart two smelters with a combined capacity of about 500,000 to 600,000 tonnes that it shut last year, the company's president said on Tuesday. The firm will maintain an aluminium output target of below 3.3 million tonnes this year, Chalco President Ao Hong also told reporters on the sidelines of a conference in Shanghai.
About 44% of Chinese aluminium smelters expect aluminium prices to stabilize this week
About 44 per cent of the 23 Chinese aluminium smelters surveyed by SMM expect aluminium prices to stabilize this week. Those neutral players see SHFE 1607 aluminium at RMB 12,300-12,500/mt and LME aluminium at USD 1,570-1,610/mt, citing several reasons. First, the price spread between SHFE 1605 and 1606 aluminium contracts continued expanding, which will dampen buying interest and limit upside room in spot prices. Small spot discounts will offer support to SHFE aluminium . Second, aluminium stocks in China’s five major markets continued falling, albeit at a slower pace. Third, longs might take profit at highs but will also enter after at lows. Another 30 per cent see SHFE 1607 aluminium rising above RMB 12,300/mt and LME aluminium breaking through USD 1,610/mt. First, disappointing US...
