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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Global bauxite reserves were 27.5 bln tonnes as of Jan 2016, says report
According to a new market research publication on global bauxite mining trends and outlook to 2020, the world bauxite reserves stood at 27.5 billion tonnes (Bnt) as of January 2016. Guinea had the world’s largest reserves, with 7.4Bnt, accounting for 26.9 per cent of the global total, with most bauxite deposits located in the western and central part of the country. Australia held the second largest reserves at 6.2Bnt. The highest grade bauxite reserves are located in Queensland and the Northern Territory, with the Weipa and Gove mines having grades of 49–53 per cent Aluminium oxide. Brazil ranked third with 2.6Bnt of bauxite reserves, of which around 80 per cent are located in the Trombetas region, the publication noted. As per the data published in the report, global bauxite ore...
Ball to sell US$3.42 bln of divestment assets to Ardagh
Colorado’s Ball Corporation announced last week that it and British-based American-owned Rexam PLC have come to terms with Luxembourg’s Ardagh Group over the sale of certain of Ball’s and Rexam’s assets in order to satisfy regulatory concerns involved in Ball’s purchase of Rexam. Ball and Rexam are among the largest makers of aluminium cans on Earth. Under the agreement, Ball and Rexam will be selling US$3.42 billion worth of assets to Ardagh: eight Rexam plants in the United States, ten Ball plants and two Rexam plants in Europe, and two Ball plants in Brazil. Ardagh would also receive innovation and support functions in Brazil, Britain, Germany, Switzerland, and the United States. According to Ball, the assets Ardagh would be receiving had a combined revenue of US$3 billion in FY 2015....
Aluminium conductor manufacturer ECA Cables posts 27% decline in profit
East African Cables Group, which manufactures copper cables and aluminium conductors and cables among other items, is waging on increased cables manufacturing and investments to return to revenue growth. This is after the regional manufacturer reported a 27 percent decline in its profits for the year 2015 of an undisclosed amount. The company has attributed the overall decline to the significant interruptions that facilitated the completion of the modernisation of the Kitui Road Copper Production plant. “The overall decline in performance was attributable to significant interruptions in our production processes as we concluded the last phase of our capacity upgrades at the refurbished Kitui Road plant,” said the firm’s Group CEO Peter Arina. EA Cables also singled out regional general...
Sonaca 200 Aircraft, Belgium, gets an airframe made of semi-stressed aluminium
Sonaca 200 is a two-seater, single-engine aircraft designed by Sonaca Aircraft for pilot training and leisure flights. It is the first aircraft assembled in Belgium, to be exhibited at the Aero Friedrichshafen show in April 2016. The airframe of Sonaca 200 is constructed with corrosion-resistant, semi-stressed aluminium structure. The fuselage, wing and tail of the aircraft are built using aluminium alloy. The main landing gear features glass fibre with powerful shock absorption, and is designed for use on unprepared and grass runways. The aircraft is designed and developed for the general aviation market and is currently undergoing tests in Belgium and other neighbouring countries for type certifications.
JNARDDC to develop aviation grade aluminium alloys for IAF
The Jawaharlal Nehru Aluminium Development and Design Centre (JNARDDC) is working towards development of aviation grade alloys for the Indian Air Force (maintenance command) as a part of the indigenization process and the 'Make in India' initiative of the government. It will also be setting up an aluminium extrusion plant in the centre. JNARDDC director Anupam Agnihotri, during the 27th foundation day programme of the centre on Friday said that there are many parts in aircraft which are made from special aluminium alloys. India is largely dependant on impoprts for sourcing these metal products. If these parts could be made locally for replacing the wear and tear caused in the aircraft it would substantially reduce the maintenance cost of any aircraft by about 15 per cent. "And this is...
China Zhongwang 2016 Q1 net profit reaches RMB604 mln
China Zhongwang Holdings Limited, together with its subsidiaries “the Group”, a world’s leading aluminium fabricated product developer and manufacturer, announced its unaudited consolidated results for the three months ended 31 March 2016. During the period under review, the quarterly revenue was approximately RMB3.46 billion. Benefited from the increasing share of high-end aluminium extrusion products in its product mix, the Group achieved gross margin expansion by 4.3 percentage points year-on-year to 33.6 per cent. Net profit reached RMB604 million. Mr. Lu Changqing, Executive Director and President of China Zhongwang, said, “In the first quarter of 2016, China’s economy continued to exhibit steady growth. The structural adjustment in the sectors of transportation, machinery and...
EGA to showcase billets at International Aluminum Extrusion Technology Seminar & Exposition
Emirates Global Aluminium (Ega), the Middle East’s largest primary aluminium producer, will participate at the 11th International Aluminum Extrusion Technology Seminar & Exposition (ET’16), which takes place from May 2 to 6 in Chicago, US. The company, which is among the top five in the world, was jointly set up by Mubadala Development Company of Abu Dhabi and the Investment Corporation of Dubai after combining their respective aluminium industry interests. Held every four years, the ET series of events has an established reputation for quality and commitment to excellence; and is highly respected by players in the aluminium extrusion industry. The ET’16 event, which marks Ega’s third participation, is expected to attract more than 1,200 industry professionals from more than 50 countries....
LME aluminium to find rising strength from SHFE aluminium
LME aluminium will find rising strength from SHFE aluminium this week, SMM predicted Friday, last week. SMM sees LME aluminium advancing to $1,640-1,700 per tonne. Aluminium stocks in China’s major markets continue falling, due to limited capacity restarts and new capacity release. Tight supply bode well for SHFE aluminium in the medium term. This week will see SHFE 1607 aluminium face selling pressure at highs but find strong support at 12,500 yuan per tonne. Spot aluminium is expected to trade at discounts of 0-20 yuan per tonne over SHFE 1605 aluminium. China April manufacturing PMI and US April non-farm payrolls, due for release this week, are expected to be positive.
Speculators push aluminium to nine-month high
Aluminium hit a nine-month peak on Friday, April 29, as speculators pushed prices higher thanks to a weaker dollar, but analysts were wary about a possible retreat. "You look at aluminium, the only buying this week has been CTA buying, we still see no consumer activity, they're not chasing this price rally," said Citi analyst David Wilson. CTAs or Commodity Trading Advisors largely run speculative funds with trading decisions usually based on momentum and other technical factors. "Aluminium is in overbought territory, given the fact we've seen decent volumes of producer hedging and I'd expect we'd see more going forward. Clearly, this looks overpriced," Wilson added. Three month aluminium on the London Metal Exchange closed up 0.8 per cent at $US1678 a tonne, the highest since July last...
Balco plans to enhance capacity to 1 MTPA
Vedanta-controlled Bharat Aluminium Company Limited (Balco) would be expanding its production capacity to 1 million tonne per annum (MTPA). The proposal for the expansion and modernisation of Balco facility located in Chhattisgarh’s Korba district was designed in 2013. It was however put on hold following global economic slowdown. Vedanta Chairman Anil Agarwal, who visited Balco early this week for the first time after taking over 51 per cent stake in the company in 2001, asked the officials to revive the plan and expedite the expansion programme with immediate effect. The Government of India holds remaining 49 per cent stake in the company that was incorporated in the year 1965 as a Public Sector Undertaking (PSU). “The company would be investing INR 10,000 crore for the expansion plan,”...
Concerns remain about new Pahang bauxite mining measures
A gamut of measures have been taken to systematize bauxite mining and transport in Pahang Malaysia, ever since the moratorium ended last month. As per the new rules, safer pakamatic lorries will be transporting bauxite on newly designed routes to new safer storage sites for stockpiles. The routes will avoid heavily populated residential areas and lorry drivers will be required to abide by load limits to avoid spillage en route. The authorities in Pahang have been talking up these new safety measures in Pahang for months now. The aim is to preempt a repeat of the environmental calamity that befell the state last year as a result of helter-skelter bauxite mining. Work is also underway, they have announced, on improvements to the Standard Operating Procedures (SOPs) that operators will be...
HP launches anodised aluminium body Chromebook 13 G1
HP in collaboration with Google on Thursday, April 28, launched its latest Chromebook 13 laptop, the Chromebook 13 G1, priced at $499 (roughly INR 33,200) for the base model. It is said to go on sale this month. Looking at the Chromebook 13 G1's design, which boasts of a brushed anodised aluminium body along with the HP's glossy iconic logo, it is hard not to see the similarities with Apple's 12-inch MacBook. The anodised aluminium body laptop even bears USB Type-C ports, and no Ethernet port. It weighs in at 1.29 kgs, and measures 319.9x219.6x12.9mm, which is thinner than the 13.1mm Apple MacBook - the MacBook is lighter however, at 0.92 kgs. HP aluminium Chromebook 13 G1, backed by a 45Wh Li-ion battery, houses 32GB eMMC 5.0 inbuilt storage along with a HP TrueVision HD webcam for video...
RUSAL's alumina production declines in Q1 2016
Russia's United Company RUSAL Plc announced its operating results for the first quarter 2016. In first quarter, RUSAL's total alumina production was 1,873 thousand tons (-1.7 per cent QoQ). Alumina production at Non-Russian operations decreased by 4.3 per cent QoQ to 1,196 thousand tons due largely to scheduled repairs performed at the production facilities (in particular at the Nikolaev Alumina Refinery and Aughinish Alumina Refinery). Output at RUSAL’s Russian operations increased by 12.4 per cent QoQ to 677 thousand tons amid an improved performance at the Achinsk Alumina Refinery.
Union drops effort to restrict U.S. imports of raw aluminium (keep inactive)
The United Steelworkers union has suspended indefinitely an unusual effort to push the United States government to restrict all aluminium imports after the campaign ran into opposition from aluminium companies, the Canadian government and even Canadian members of the union. The union on Friday withdrew its petition to an American trade panel, which was filed the preceding Monday, after an aluminium industry group agreed to work with the union to address its main concern: Chinese aluminium production overcapacity and exports. “The Aluminium Association shares many of the concerns expressed by the United Steelworkers regarding Chinese aluminium overproduction,” the group said in a statement. “Overcapacity must be addressed to maintain a vibrant and healthy North American aluminium...
RUSAL Q1 aluminium production increases amid signs of price recovery
UC RUSAL announced its operating results for the first quarter 2016. Aluminium production in first quarter totalled 916 thousand tons (-0.5 per cent QoQ). The smelters utilization rate was on average at 95 per cent. Russia Siberian smelters accounted for 94 per cent of total aluminium output. First quarter 2016 aluminium sales increased by 9.2 per cent quarter-on-quarter to 957 thousand tons. This growth in sales is largely explained by the seasonal factors (lower sales in 4Q15 during the winter season) and the addition of primary aluminium produced at BOAZ (the plant is currently operating in the test mode). The share of VAP4 in total aluminium sales declined to 41 per cent in first quarter 2016 (versus 45 per cent in 4Q15) amid higher sales of primary aluminium. The volume of VAP sold...
JLR-Novelis co-developed high-strength aluminium alloy helps Jaguar reach recycling milestone
As the Jaguar XE celebrates its first full-year of sales, ‘REALCAR’, the pioneering recycled aluminium project that contributes to the awarding winning saloon’s aluminium-intensive body has reached a significant milestone. Jaguar Land Rover has reclaimed over 50,000 tonnes of aluminium scrap, the weight of 200,000 XE body shells, back into the production process during 2015/16, preventing more than 500,000 tonnes of CO2 equivalent from entering the atmosphere by not using primary aluminium material. The figures are a result of project ‘REALCAR’ which involves 11 UK press shops implementing a closed-loop, segregating waste aluminium scrap so that it can be sent back into production to be re-melted into recycled aluminium sheet for use in Jaguar Land Rover vehicles. The Jaguar Land...
Rico Auto sets up manufacturing plant in Chennai
Rico Auto Industries Ltd stock was higher by 5 per cent at INR 40. The company has set up a manufacturing plant at Chennai for supply of High Pressure Die Casting Aluminium Auto Components to Renault-Nissan. The scrip opened at INR 40 and has touched a high and low of INR 41.1 and INR 39.7 respectively. So far 1134237 (NSE+BSE) shares were traded on the counter. The current market cap of the company is INR 526.32crore. The promoters holding in the company stood at 50.1 per cent while Institutions and Non-Institutions held 3.73 per cent and 46.17 per cent respectively. Rico is a world-class engineering company supplying a wide range of high precision fully machined aluminium components and assemblies to automotive OEMs across the globe. Rico’s consolidated group total turnover is over US$...
Gränges posts volume growth and stable profit in Q1
Gränges announced interim report for January-March 2016. Sales volume reached 45.1 ktonnes (42.7), an increase of 5.7 per cent compared to previous year. Net sales of the rolled aluminium products supplier for brazed aluminium heat exchangers totalled SEK 1,360 million (1,456), a decrease of 6.6 per cent compared to previous year. Adjusted operating profit amounted to SEK 155 million (155), corresponding to an adjusted operating margin of 11.4 per cent (10.6). Gränges' Operating profit amounted to SEK 155 million (155). Profit for the period was SEK 94 million (111), and earnings per share basic and diluted decreased to SEK 1.25 (1.49). Cash flow during January- March 2016, before financing activities, was SEK -22 million (-1). Net debt amounted to SEK 316 million at 31 March 2016,...
