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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New dry recycling system for aluminium salt cake from BHS-Sonthofen
A simplified dry recycling process to recover the 5-10 per cent of aluminium which remains in the aluminium salt cake produced in the smelting process of secondary aluminium, has been developed by German recycling equipment manufacturer, BHS-Sonthofen. According to the company, to date the recovery of this aluminium has thus far proven difficult, costly and time consuming. However, it said that it has now developed a new process based on the selective impact crushing of the salt cake. By using its multi-functional Rotorshredder and VSI rotor centrifugal crusher, BHS-Sonthofen said that its process has a number of advantages over traditional methods including lower power consumption, lower wear and maintenance costs as well as lower noise pollution – as well as no danger of dust explosion...
Chalco turns in second straight profitable quarter
State-owned Aluminum Corporation of China Ltd (Chalco) reported its second consecutive profitable quarter today, buoyed by a rise in domestic prices for primary aluminium. Chalco turned in a net profit of CN¥19.2 million (US$2.97 million) for the first quarter, which is down from a profit of CN¥48 million (US$7.74 million) in the first quarter of 2015 the firm said in a filing on the Shanghai stock exchange today. The firm, which is the world’s biggest producer of aluminium, made a return to the black in 2015 after cutting costs due to record losses the year prior. The year has been good so far for the primary aluminium market in the People’s Republic of China – the price of a front-month contract on the Shanghai Metal Exchange (which generally reflects domestic supply and demand of spot...
SHFE aluminium to lack upward momentum
SHFE 1606 aluminium will struggle around the 5-day and 10-day moving averages and move at RMB 12,500-12,700/mt today, SMM said in an early morning forecast. A softer UD dollar and rising crude oil will push LME aluminium up to USD 1,640-1,670/mt. In China’s spot aluminium market, spot discounts of RMB 0-30/mt and spot premiums of RMB 0-10/mt are expected over SHFE 1605 aluminium contract. Key macroeconomic indicators for base metal prices Bases metals will maintain diverging trend on Friday with a big bag of economic figures coming under spotlight, including annualized Q1 GDP from euro zone and France, US annualized March price index for PCE, University of Michigan’s CCI and speeches of US Dallas Federal Reserve Chairman Kaplan. Q1 GDP from euro zone may miss forecast as inflation in euro...
Century reports Q1 2016 financial results: Sales decline but liquidity improves
Century Aluminum Company reported a net loss of $16.2 million ($0.19 per share) for the first quarter of 2016. Results were favourably impacted by a $5.8 million ($0.06 per share) lower of cost or market inventory adjustment. After consideration of this item, the company reported an adjusted net loss of $22.0 million and an adjusted loss per share of $0.23 for the first quarter. For the first quarter of 2015, Century reported net income of $73.8 million. Results included $6.5 million for an unrealized gain on fair value of contingent consideration related to the Mt. Holly acquisition and were negatively impacted by $1.6 million for signing bonuses related to a new labor agreement in Iceland and $1.0 million related to the separation of a former senior executive. Sales for the first...
Bald Hill ships first cement-grade bauxite
ASX-listed Australian Bauxite (ABx) has shipped its first 5,557 tons of cement-grade bauxite from the Bald Hill mine, in Tasmania. The company told shareholders on Thursday that the customer sought a second, larger shipment of between 30 000 t and 40 000 t once the large stockpile warehouse at the receiving port was approved and ready to receive bauxite. The next shipment would occur within the next two months, said ABx, adding that the sales price of the cement-grade bauxite was profitable, but remained commercial-in-confidence. ABx CEO Leon Hawker pointed out that, during 2014, the company had developed three marketing plans for the bauxite produced at the Bald Hill mine, with the first two plans focused on selling metallurgical bauxite to alumina refineries in China and India. However,...
UC RUSAL, Guinea agree on partnership development terms for Friguia bauxite complex
UC RUSAL, a leading global aluminium producer, and the Republic of Guinea have signed an annex to the Dian-Dian concession agreement and also reached an agreement on resuming operations at the Friguia bauxite and alumina complex. The newly signed annex to the Dian-Dian concession agreement splits the development of the Dian-Dian bauxite mine into 3 stages. The first stage shall be completed by the end of 2017 and foresees the construction of a mine with the annual bauxite capacity of 3 mln tonnes. The second stage is expected to be completed by late 2021 and foresees an increase in mining capacity by up to 6 mln tonnes per year as well as the development of a project to increase the mine’s annual capacity to 9 mln tonnes with a further possibility to make this amount reach 12 mln tonnes....
Jaguar XE's recycled aluminium body saves 500,000 tons of pollution
A recent auto industry study revelaed that Jaguar has saved 500,000 tons of greenhouse gas pollution through the use of recycled aluminium in its XE. The Coventry-based car maker has been using a closed-loop aluminium recycling process to construct the XE’s bodyshell, and says that after 12 months of production it has reclaimed more than 50,000 tons of the metal – about the same weight as 200,000 XE bodyshells or six Eiffel Towers. The production process involves 11 press shops that segregate waste aluminium to be sent back into production, and is said to be 95 per cent more efficient than the sourcing of primary aluminium. These figures illustrate how beneficial using reclaimed materials can be in car production, and come after the car maker has invested a total of £7 million into the...
Malaysia's Tan Chong to sell aluminium casting assets for RM5.7 mil
Tan Chong Motor Holdings Bhd (TCM) has proposed to sell off assets of loss-making subsidiary TC Aluminium Castings Sdn Bhd to sister company APM Automotive Holdings Bhd for RM5.701 million cash. TCM and APM has a common shareholder, namely Tan Chong Consolidated Sdn Bhd (TCC). TCC owns 43.88% of TCM and 37.53 per cent of APM, according to Bloomberg data. TCM said in a filing with Bursa Malaysia that it will pocket in gains of RM640,000, which will be used for repayment of borrowings. The filing said TC Aluminium Castings’ parent, TC Manufacturing Holdings Sdn Bhd, which in turn is a wholly-owned subsidiary of TCM, has proposed to enter into a related party transaction with APM Thermal Systems Sdn Bhd, a wholly-owned subsidiary of APM Automotive, to dispose of TC Aluminium Castings’ assets...
Sapa delivers record results in first quarter
Sapa has delivered the strongest first quarter since the company was established in 2013. The demand for lighter cars in both North America and Europe, resulting in aluminium substitution in the automotive industry, is contributing positively. Owners Orkla and Hydro reported to the financial markets Sapa's results for the first quarter of 2016. Sapa continues to deliver strong results. Underlying EBIT improved with 46 per cent compared to the same quarter previous year to NOK 571 million. Performance improved across all business areas mainly due to the effects of the improvement programmes, increased share of higher margin business, positive currency effects from the weakening Norwegian krone against the US dollar and Euro and seasonally stronger demand. Total revenue for Q1 was NOK...
Researchers develop process for inexpensive solar desalinization using aluminium
Solar desalinization, once considered to be too costly to implement in an economic manner, may be achievable in the near future thanks to a process that utilizes aluminium. Researchers from Georgia Institute of Technology and Nanjing University have developed a process for solar desalinization using self-assembling nanoparticle membranes that are based upon aluminium and other inexpensive materials. The materials used in the described process remain stable even after several uses as well. “Our plasmon-enhanced solar desalination device can significantly increase the energy transfer efficiency with not only enhanced light absorption, but also more localized heating,” explain the researchers. “To enable efficient solar desalination, broadband and efficient light absorption is the critical...
NALCO to go for toll-smelting of aluminium in Iran
Taking advantage of availability of cheap gas based power in the Gulf region, National Aluminium Company (Nalco) plans to go for toll-smelting arrangement soon with three Iranian companies to produce aluminium. Nalco CMD, T K Chand, who was in Iran recently as part of an Indian business delegation, has already held preliminary discussion in this regard with top officials of the government there and state-owned Iranian Mines & Mining Industries Development & Renovation Organization (IMIDRO). "Nalco is exploring the possibilities of toll-smelting in Iran through IRALCO (Iranian Aluminium Company), Al-Mahadi, and SALCO. If things work out, the toll-smelting can be done in next 3 to 4 months", Chand said. This arrangement, he said, will be a precursor to the proposal to set up an 0.5 million...
Norsk Hydro puts up a 'stronger' performance in primary aluminium JVs for Q1 2016
Norsk Hydro has announced its financial results for the first quarter ended on March 31, 2016. The underlying earnings before financial items and tax of the Norway based energy and aluminium producer declined to NOK 1,501 million in the first quarter, down from NOK 1,566 million in the fourth quarter of 2015. The decline mainly reflected lower realized aluminium and alumina prices, partly offset by positive currency effects, lower raw material costs and seasonally stronger downstream results. • Underlying EBIT of NOK 1 501 million for Q1 • Lower realized alumina and all-in aluminium prices • BNOK 2.9 Better improvement ambition progressing according to plan • 2016 global primary metal market largely balanced Underlying EBIT for Bauxite & Alumina decreased compared to fourth quarter mainly...
Pahang ministry hopes bauxite SOPs ready before moratorium ends
The Natural Resources and Environment Ministry of Pahang, Malaysia, is hoping that improvements to the standard operating procedures (SOPs) for bauxite mining can be finalised before the expiry of the moratorium on the activity. Its Deputy Minister Hamim Samuri said, however, the new SOPs would only be enforced after the expiry of the moratorium, and that it was currently being discussed with the related agencies and parties. "The SOPs include the gazetting of special routes for lorries carrying bauxite from all mining sites to the port, so that they do not pass through residential areas, public places, crowded routes, and comply with the load limit. "In addition, (it includes) the specification of a centralised stockpile location by the Pahang state government, to improve the stockpile...
Baosteel to put online 700 mln aluminium can project
Baosteel will put online its aluminium can project in Heilongjiang province next month and plans to more than double the capacity in the future, cnmn.com reported. The project will produce 700 million aluminium zip-top cans in the first phase. The company plans to expand total capacity of the project to 2 billion zip-top cans in the second and third phase. The project will target not only northeast China, but also Russia and Mongolia markets.
Henan begins building large-scale aluminium alloy wheel project
Henan Energy Sanmenxia Dicastal Wheel Manufacturing Co. broke ground on its aluminium alloy wheel rim project several days ago, industry sources reported. The project is designed to produce 4 million aluminium alloy wheel rims each year. Planned investment for the first phase of the project totals 1.33 billion yuan ($205 million). Construction will take about one year.
SHFE aluminium to face possible short selling
SHFE 1606 aluminium will face possible short selling and move at RMB 12,600-12,800/mt Today, SMM observed in an early morning forecast. Despite hawkish tone during the US Fed’s policy meeting, chance remains small for a rate hike in June. LME aluminium will move at USD 1,630-1,650/mt. In China’s spot aluminium market, spot discounts of RMB 0-30/mt and spot premiums of RMB 0-10/mt are expected over SHFE 1605 aluminium contract. Key macroeconomic indicators for base metal prices Diverging trend among base metals should intensify on Thursday. Attention is turning to US annualized Q1 GDP today and market will continue digest news form US Fed April rate meeting. US Q1 GDP growth is expected to slow down, which can be reflected by US soft labour market, weak inflation, consumption and property...
Orbite announces a $15 mln financing from the govt
Orbite Technologies Inc. announced yesterday that it has entered into a letter of intent with Investissement Quebec, acting as mandatory of the Government of Quebec, whereby Investissement Quebec has agreed to provide the company with an aggregate financing of $15 million. The Financing is expected to be comprised of the purchase of 10 per cent convertible non-secured debentures in the principal amount of $5 million, the purchase of class A shares of the company in the amount of $5 million, together with the grant of a $4.9 million bridge loan secured by the company's 2016 refundable investment tax credits. "These funds, as we receive them, will allow us to reaccelerate our activities at Cap-Chat towards completion of our high purity alumina (HPA) plant," stated Glenn Kelly, CEO of...
Altech signs off take sales agreement with Mitsubishi for all HPA production
Altech Chemicals Limited has announced the execution of a 10 year off take sales arrangement (Agreement) with Mitsubishi Corporation’s Australian subsidiary, Mitsubishi Australia Ltd (Mitsubishi) for 100 per cent of the high purity alumina (HPA) production from the company’s proposed Malaysian HPA plant. The Agreement appoints Mitsubishi as the exclusive buyer of the full 4,000tpa production capacity and will commence on the date of first shipment of final HPA product. The contracted sale quantities will mirror Altech’s proposed HPA plants’ production ramp up and account for 100 per cent of planned production. Under the Agreement both parties have set specific off take sales target quantities, which will be at prevailing market prices. Altech managing director, Mr Iggy Tan said that...
