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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China aluminium consumption to hit 44 mln tonnes by 2020 -Chalco president
Aluminium consumption in China is set to grow by 7 to 10 per cent a year over the next five years and hit 44 million tonnes by 2020, Aluminium Corp of China Ltd (Chalco) President Ao Hong said on Tuesday. At the same event, Russian aluminium producer Rusal said it expected China's aluminium consumption growth to reach 7 per cent this year. About 4 million tonnes of aluminium capacity in China has been shut down since July 2015, Rusal's Deputy Chief Executive Oleg Mukhamedshin said.
China considers fund to cope with aluminium producers closure
China is considering setting up a fund to cope with the closure of aluminium producers and combat volatility in the futures market, Wen Xianjun, Vice Chairman of China Nonferrous Metals Industry Association, said on Tuesday. China's aluminium producers have previously pledged to cut production amid plunging prices for the metal. Aluminium prices on the Shanghai exchange fell for six straight years before staging a pick-up this year. China is the world's top consumer and producer of aluminium. Wen said aluminium prices between 11,780 yuan and 12,000 yuan ($1,806 and $1,840) per tonne would be a reasonable average level for this year. Prices are currently around 11,875 yuan a tonne. In February, six large Chinese aluminium producers said they were considering forming a joint venture company...
Centre, states to brainstorm on making mines auction in India a success
The Centre has called a meeting of the Indian state governments this month to deliberate on making the next phase of mineral mines’ (iron ore, bauxite, limestone, gold) auction a success after the initial round failed to get a strong response from the industry. The high-level meeting, to be chaired by Steel and Mines Minister Narendra Singh Tomar, is scheduled to be held in Goa by month-end and will also discuss issues like setting up of District Mineral Foundation (DMF), status of National Mineral Exploration Trust (NMET) and steps to check illegal mining. As per the letter issued by the Union Mines Ministry, a meeting with Ministers in-charge of Mining Department of all state governments has been called by Tomar on key issues pertaining to the mining sector on May 27, 2016 at Goa....
China bauxite prices plateaus despite higher ViU-adjusted material from Brazil
Bauxite prices remained flat over the week, down slightly (0.1 per cent or US$0.1/dmt) to close at US$43.4/dmt. This was despite higher ViU-adjusted material from Brazil impacting prices. Bauxite exports from Guinea by SMB (Weiqiao) are also influencing CBIX, although it remains unclear what grades the company can consistently export from its current tenements. The company is reportedly loading at least one cape vessel per week, so we expect to see Guinean prices having more influence on CBIX over the weeks and months ahead. We also expect to see Malaysian bauxite re-enter to the market over the months ahead, raising the prospect of Chinese merchant refiners looking to continue building their stockpiles, collectively estimated by CM at 35 million tonnes. Activity in Malaysia remains quiet...
Röder's revolutionary carbon-aluminium military shelters to feature at Eurosatory Exhibition
Röder HTS Höcker will be presenting its revolutionary Carbon Hybrid Military Shelter at the Eurosatory Exhibition in Paris, at the Viparis Nord Villepinte Exhibition Centre between 13-17 June, at Hall 6, Stand K61. This pioneering structure is engineered with a carbon aluminium profile, making it stronger than normal aluminium but also much lighter. Eurosatory presents all aspects of land and airland defence, as well as a strong civil and homeland security focus. The exhibition covers the whole supply chain in all defence and security arenas from raw materials through to operational systems, contractors and finished products. It will also feature lifesize presentations of equipment and weapon systems throughout, as well as conferences, workshops and panel discussions. As an established...
Global aluminium can stock market moving East
Global demand for beverage cans will grow~3-4 per cent in 2016 and a similar growth trend is expected up until the end of this decade. This growth is being driven largely by increased consumption in emerging markets. Together, the US and Canadian markets use approximately 94 billion aluminium cans per year, making North America the largest market for can stock in the world, according to UACJ. Around 60 per cent of that amount are cans for carbonated beverages, the consumption of which have been declining in recent years, thereby resulting in sluggish demand. The remaining 40 per cent are cans for beer, the demand for which remains strong. A recent study shows that 55 per cent of all beers are packaged in aluminium cans, which is up from 50 per cent five years ago. The 5 per cent growth...
Aluminium rolling costs keep on falling worldwide
Production costs of rolling mills are falling due to both lower LME prices and weak energy prices. According to CRU’s Aluminium Rolling Cost (ARC) model, the costs fell in 2014 and 2015, with 2016 costs likely to continue their downward movement. However, from 2017 onwards, CRU expects costs to start recovering. Mills typically source a range of raw materials including primary remelt ingot or liquid, rolling slab, hot rolled coil and a variety of different forms of scrap. Scrap makes up approximately 30-35 per cent of the total raw material mix. Raw material costs represent approximately 65-75 per cent of a rolling mill’s total costs, therefore the total business costs are closely linked to the LME price. It has fallen markedly since 2014 and CRU forecasts that prices will weaken further...
Further correction in aluminium prices mean more downside for Hindalco
Shares of Hindalco, an aluminium producer, have corrected 6 per cent in the last two trading sessions after a sharp fall in the LME aluminium prices. LME aluminium prices have fallen 5 per cent in the last three trading sessions, after rallying strongly in the year till date. Various fundamental and technical indicators suggest that the aluminium prices could correct further, which may not be a positive development for Hindalco. Aluminum inventories globally continue to remain high unlike other metals such as steel, iron ore and zinc. Against an estimated aluminium demand growth of 6 per cent since the beginning of 2015, aluminium inventory has increased by 14 per cent. Major part of this has come in recent months after prices rose. For instance, 50 per cent of the rise in inventory has...
China aluminium destocking slows down significantly
Aluminium stocks in China’s five major markets fell at a much slower pace last week, SMM says. Falling aluminium prices dampened buying interest. Besides, operational aluminium capacity grew in late April due to new capacity release. These explained why inventory decline slowed down, Liu Xiaolei, SMM aluminium analyst said. Release of new aluminium capacity will be quite limited during May and June, though, Liu added. There is still an over 1 million-tpy gap in annualized operational aluminium capacity. This means aluminium destocking will continue, and this will lend support to aluminium prices. The table below shows details of aluminium stocks at China’s five major markets: Unit: 1,000 tonne LME aluminium to remain weak LME aluminium will remain weak at USD 1,580-1,610/mt on Monday, due...
Aluminium centre develops new refractory material
Calcined clay is the most common material used as refractory material (lining of high temperature furnaces). As demand of calcined clay grows manifold, an alternative is needed. The city-based Jawaharlal Nehru Aluminium Research Development and Design Centre (JNARDDC) has found a substitute to calcined clay that will reduce the material cost by at least five times. The centre is in the process of using the otherwise unutilized saprolite ore found at the bottom of a bauxite mines. "It is for the first time that saprolite is being used as a refractory material. Centre has already filed a national patent for it. Though the project is still in research stage, it has shown promise. We have tested the material in a furnace at MIDC Hingna over a period of last one year. The upscaling process,...
EGA wins 2016 Ideas.Arabia Idea of the Year Productivity Award
Testifying to its continuous efforts to push the boundaries of innovation, a submission from Emirates Global Aluminium ("EGA") won the Productivity Award in the 2016 Ideas.Arabia Idea of the Year Competition, held coincident with the Ideas.Arabia 11th International Conference in Dubai at the end of April. The aim of the annual contest is to honour employees and organisations by recognising the most significant ideas implemented in the preceding period. It also provides an opportunity for participating companies to benchmark against other leading organisations, and motivate employees. EGA's award-winning suggestion, entitled "Welding flexible instead of clamping to reduce joint drops", was submitted by Zakir Hussain, Venkateswara Rao, Reejan Joseph, and Syed Fakruddin Jaleel from Cell...
Alba CFO among the top 50 of “Who’s Who in Middle Eastern Finance 2016”
Aluminium Bahrain B.S.C. (Alba)’s - the Bahrain-based international aluminium smelter - Chief Financial Officer (CFO) Ali Al Baqali has been named in the top 50 of the “Who’s Who in Middle Eastern Finance 2016” list announced by the well-known Global Finance magazine. This is a top honour for Ali Al Baqali who is amongst the five CFOs in Bahrain featured in this list. The “Who’s Who in Middle Eastern Finance” is an exclusive annual resource that recognises the 50 most influential, creative, and powerful people in the Middle Eastern business and financial communities. Congratulating Ali Al Baqali, Alba’s Chief Executive Officer Tim Murray said: “It is a moment of pride for us that Ali has been recognised as a one of the leaders in the Region’s financial list. Ali is a highly experienced...
Altech sells high purity alumina exploration licence for $2 mln cash
Altech Chemicals Limited has announced the execution of an agreement with Dana Shipping and Trading S.A. for the sale of exploration licence E70/3923 at Meckering, Western Australia for $2.0 million. The exploration licence is surplus to Altech’s feedstock requirements for its proposed Malaysian high purity alumina (HPA) plant. Feedstock for the plant will be sourced from within M70/1334 which contains an estimated ~11 million tonnes of kaolin mineral resources, representing in excess of 250 years of supply for the HPA plant. Altech continues to hold exploration licences E70/4708, E70/4716, E70/4717EL at Meckering. Altech will receive proceeds from the sale in two tranches; Dana has already paid a non-refundable cash deposit of $250,000, the balance of $1,750,000 will be paid within 5...
Supreme Court of India quashes Odisha's plea on Niyamgiri bauxite mining
The Supreme Court on Friday scrapped a petition filed by state owned mining company Odisha Mining Corporation (OMC) to consider afresh the possibility of holding gram sabhas to decide bauxite mining on top of Niyamgiri hills. A bench of the apex court headed by Justice Ranjan Gogoi, refused to entertain the petition. The court, instead, directed OMC to approach appropriate forums against the decision of the gram sabhas held in July-August 2013. The state government through its PSU Odisha Mining Corporation (OMC), had filed an interlocutory application in the apex court. After a failed bid to mine bauxite atop the Niyamgiri hills, OMC had sought re-convening of the gram sabhas to seek afresh the mandate of the affected Dongaria tribals. Allowing mining atop the Niyamgiri range could have...
Stockpile growing in bauxite mines: Exports from Bua stagnant
Exports have experienced a setback in Bua. At least $4 million worth of bauxite remains in Fiji mining sites for a year now despite improvement in the global market. About 70,000 tonnes of bauxite valued at $2.8 million has remained at the Nawailevu stockpile area and 30,000 tonnes worth $1.2m has been kept at the mining site in Dreketi, Macuata. "We have not been able to export bauxite since the first quarter of last year and haven't been able to make changes or to export this year," Aurum Exploration (Fiji) Ltd's director Derek Chiu confirmed. "The global demand for bauxite is very bad and this has affected the situation. The quality of the bauxite from Bua has also delayed our export from Bua," he said. Director mineral Raijeli Taga also confirmed the tonnage of bauxite that has not...
Qiantu Motor K50 electric sports car with an aluminium frame debuts in China
Auto China motor show in Beijing was full of electric cars this year. One of the most conspicuous was the Qiantu Motor K50, a pure electric sports car with an aluminium frame and carbon fiber body, which is based on the earlier prototype shown in Shanghai in 2015. The Qiantu K50 with a formidable aluminium frame is scheduled for production in 2017 with price tag north of $100,000. Spec includes 0-62 mph (100 km/h) in 4.6 seconds. Two electric motors provides 402bhp of power and 479lb ft (650 Nm) of torque. The range is apparently up to 186 miles (300 km). Inside there is Tesla-style large touchscreen. According to Autocar, Qiantu Motor is building a new factory with annual output of 50,000 cars, it is assumed that most of the production will be designed for other low-spec, more popular...
Tesla tumbles but stands to reshape global metals market and aluminium demand
Electric car maker Tesla's shares have tumbled after the company lost two executives and nearly doubled its first-quarter loss, but some analysts are turning their attention to the company’s potential effect on the global metals market, especially lithium, aluminium, and copper. The company yesterday reported a quarterly loss of $US283 million due to lower than expected deliveries, but said it would increase annual production to half a million cars two years earlier than it had planned. Despite the company’s woes, growing demand for electric cars could reshape the consumption of metals in the auto industry, some market participants say. The individual metals needed to manufacture an electric car are numerous, but potential beneficiaries range from obscure materials such as lithium to...
Aleris reports Q1 Results: Adjusted EBITDA declines due to low aluminium prices and reduced scrap availability
Aleris Corporation reported results for the three months ended March 31, 2016. First Quarter 2016 Results: Adjusted EBITDA totalled $45 million for the first quarter of 2016 compared to $55 million for the first quarter of 2015. First quarter results were impacted by unfavourable year-over-year scrap spreads in North America caused by continued low aluminum prices and reduced scrap availability, and changing currency exchange rates which decreased Adjusted EBITDA by approximately $9 million. The U.S. dollar weakened 4 percent in the first quarter of 2016 while it strengthened 11 percent in the first quarter of 2015. This resulted in $3 million of losses on the remeasurement of U.S. dollar working capital in Europe during the first quarter of 2016 and $5 million of gains in the prior year....
