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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DUBAL Holding posts $256 mln net profit for 2015 despite aluminium industry challenges
DUBAL Holding LLC, the wholly-owned subsidiary of Investment Corporation of Dubai that has been operational since 2014 to look after, among other things, a 50 per cent share in Emirates Global Aluminium, today held its annual general meeting at the Rulers Court. HH Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance and the Chairman of the DUBAL Holding, was present with shareholder representatives from ICD, the DH board, DH management, and its auditors. HH Sheikh Hamdan bin Rashid Al Maktoum who presided over the meeting, was presented with an update on EGA which was formally established at the beginning of 2014 by combining the aluminium industry assets of ICD and Mubadala Development Company. HH Sheikh Hamdan bin Rashid Al Maktoum stated that in 2015...
China alumina bullish as SHFE aluminium price hits new highs
China’s spot alumina prices were bullish this week as domestic aluminium prices reached a 10-month high last Friday and firmed further on Monday, market participants said. The front-month aluminium contract on the Shanghai Futures Exchange closed at Yuan 12,830/mt ($1,970/mt) on Monday. The last time the SHFE price was seen above this level was on June 8, 2015, when the front-month price settled at Yuan 12,860/mt. The current price was also up from Yuan 11,940/mt last week and from Yuan 11,660/mt a month ago. The Platts ex-works Shanxi alumina spot assessment stood at Yuan 1,995/mt full cash terms on Monday, after gaining Yuan 15/mt on Friday. The current price was up Yuan 35/mt from last week and up Yuan 85/mt from a month ago. The Shanxi price is expected to rise further in the near...
Odisha Mining Corp on track to be a long-term bauxite supplier
Odisha Mining Corporation (OMC), a state-run entity engaged in iron ore supplies to steel plants both within and outside the state, is on course to be a long-term bauxite supplier to aluminium producers operating without captive leases. The central mines ministry has approved the reservation of the Sasubohumali bauxite mines with deposits of 81 million tonne (mt) in favour of OMC. Also, the Centre had earlier reserved Karlapat mines with 207 mt of bauxite reserve. With two bauxite mines in its kitty, OMC is well positioned to cater to the bauxite requirement of the aluminium units. "The Centre has approved our request to reserve Sasubohumali bauxite mines for OMC. We would take steps to issue composite license (prospecting license cum mining lease) to OMC. The Karlapat mines have also...
Aluminium foil, sheet and can stock shipments increase in US and Canada, powder and paste shipments drop
According to an Aluminum Association report, estimated shipments of Aluminum Foil by U.S. and Canadian producers totaled 87.6 million pounds during March 2016, a rise of 1.7 per cent over the March 2015 total of 86.1 million pounds. Compared to the previous month, shipments increased 10.4 per cent over the February 2016 total of 79.3 million pounds. Year to-date shipments through March 2016 totaled 240.6 million pounds, up 3.9 per cent over the 2015 year-to-date total of 231.5 million pounds. Estimated net shipments of Aluminum Sheet and Plate by U.S. and Canadian producers totaled 735.2 million pounds during March 2016, a rise of 1.8 percent over the March 2015 total of 722.2 million pounds. Compared to the previous month, shipments increased 7.8 percent over the February 2016 total of...
Aluminum Association of Canada reports increase in primary aluminum production in March
The Aluminum Association of Canada reported that primary aluminum production in Canada continued its upward trend by increasing for the tenth consecutive month. Production in March 2016 increased 1.6 percent to an annual rate of 3,202,689 metric tonnes, up 49,145 tonnes over the February 2016 rate of 3,153,544 TPY. Compared to a year ago, production was up 13.9 percent over the March 2015 rate of 2,811,418 TPY. Actual production in March totalled 271,266 metric tonnes. Through the first three months of 2016, production is up 12.1 per cent over the same period in 2015.
New York designer unveils aluminium bottles for Pepsi
Noted New York based designer Karim Rashid has created a set of aluminium bottles for drinks brand Pepsi, one of a series of megabrands that presented in Milan this year. Working in collaboration with parent brand PepsiCo, Rashid has created three aluminium containers for the carbonated soft drinks. The Prestige designs, which will be used for special events hosted and sponsored by the brand, each feature a gently tapered form. Colours and patterns are used to differentiate the brand's Pepsi, Pepsi Light and Pepsi Max varieties. "The (aluminium) bottle that we did, which was a four-year project, is very complex," said Rashid, during a panel discussion organised by Pepsi and chaired by Dezeen editor-in-chief Marcus Fairs. "The technology to produce it is all new, even just the feeling of...
NCKU researchers invent aluminium bonding wires
National Cheng Kung University (NCKU) researchers’ latest invention, of aluminium bonding wires used in semiconductor packaging, is poised to revolutionize the industry by providing a cheaper alternative to gold, silver and copper, materials science professors Hung Fei-yi and Lui Truan-sheng said. Due to their superior conductivity and ductility, gold, silver or copper bond wires are used to make the ball bonds that connect 90 per cent of the world’s LED and IC semiconductor devices to their casing or frames, the researchers said. However, the high prices those metals command make mass production expensive, with gold valued at about NT$2 million (US$61,862) per kilogram, silver at NT$40,000 per kilogram and copper at the much lower, but still pricey, NT$220 per kilogram, they said. In...
B&O Play introduces smallest Bluetooth speaker using aluminium cone mid-woofer
B&O Play has taken the wraps off its smallest Bluetooth speaker to date, adding the BeoPlay A1 to its line-up, which it states provides up to 24 hours portable playtime during everyday use. Fitting “comfortably in the palm of your hand”, the BeoPlay A1 measures in at 5.2” x 1.9” and weighs 600 g – built for life on the go. B&O Play states that a unique, dedicated DSP algorithm with advanced high-slope filtering sees the BeoPlay A1 “create a spacious 360-degree soundscape”, with the speaker sporting a fully active, two-way design using an aluminium cone mid-woofer, a silk dome three-fourth” tweeter and advanced DSP filtering. The aluminium cone mid-woofer employs a neodymium magnetic system and high-peak power amps, with the BeoPlay A1 delivering “a full-range deep bass to as low as 40 hz...
Global automotive lightweight material market to grow at 14% CAGR during 2016 - 2022
According to a recently published market research report, the global automotive lightweight material market (includes components made from downstream aluminium and high-grade aluminium alloy) was estimated at $77.1 billion in 2015, and it is expected to grow at a CAGR of 14.0 per cent during 2016 - 2022. The factors driving the growth of the global market include growing enforcement by government for environmental regulations, increasing number of passenger vehicles and advancement in technology, along with change in material used for manufacturing. Various manufacturers are forced to operate and adopt the new policy and regulations, as per different legislations worldwide to reduce CO2 emission. OEMs across the globe are pushing their strategies towards more advanced technique and...
Ford recycles enough aluminium to build 30,000 F-150 bodies every month
Ford Motor Co says the toughest, smartest, most capable and safest F-150 ever is also the greenest F-150 – thanks to advanced materials like high-strength, military-grade aluminium alloy and EcoBoost engine technology. The American carmaker recycles as much as 20 million pounds of aluminium stamping scrap per month using the closed-loop system at Dearborn Truck Plant, which builds the F-150. That is the equivalent of more than 30,000 F-150 bodies in the largest configuration – a SuperCrew body including doors, plus hood, tailgate and 6.5-foot cargo box. Opting for aluminium over steel in new automobile construction is the best way to reduce energy consumption and carbon emissions, according to Oak Ridge National Lab. Recycled aluminium avoids 95 percent of the greenhouse gas emissions...
LME Aluminium to hold firm, SMM forecasts
Aluminium on London Metal Exchange will hold firm at USD 1,640-1,670/mt today, SMM forecasts. SHFE 1606 aluminium will challenge resistance at RMB 13,000/mt and move at RMB 12,750-13,050/mt on market bullishness. In China’s spot aluminium market, spot discounts of RMB 0-40/mt are expected over SHFE 1605 aluminium contract.
Aluminium Association of Canada welcomes USW's withdrawal of petition demanding tariff on U.S. imports
The Aluminium Association of Canada (AAC), consisting of Alcoa, Alouette and Rio Tinto, is thrilled with the decision of the United Steelworkers (USW) to withdraw its petition for the imposition of a 50 per cent tariff on aluminium imports. "We share the USW's determination to find solutions to the market's structural disruptions. We also believe that the continued support of governments through commercial diplomacy is the best way to ensure the sustainability of North America's aluminium industry," says Jean Simard, President and CEO of the AAC. "We applaud the USW-affiliated unions in Quebec and the Unifor union, and the Canadian and Quebec governments, for their contribution to resolving this crisis. We managed to protect our industry thanks to a shared vision of the issues, the...
Govt of India may recommend provisional safeguard duty on aluminium
Just as provisional safeguard duty was imposed on the import of steel last year, the Government of India is likely to recommend the same for aluminium import as well, reports . Indian aluminium giants like Hindalco, NALCO, BALCO and Vedanta have complained about the incessant dumping from China and Middle East. FY15 saw a rise in imports of the metal to 56 per cent. The government had hiked the import duty from 5 per cent to 7.5 per cent in the budget. But the local aluminium companies feel it isn't enough and have asked for a 20 per cent import duty. But the government hasn't given any details on how much relief will be provided to these companies as of yet.
Aluminium long position on LME biggest since Nov 2014: Analysts
Aluminium hit the highest in over eight months on Friday, April 22, but many analysts were wary that prices were stretched and could be due a correction lower with demand still patchy. Strong buying lifted metals in the European afternoon as stops were hit and speculators chased prices higher after they rallied on Thursday, last week, partly on optimism about an economic rebound in top metals consumer China. But many analysts have said underlying supply and demand do not justify the extent of the price gains. "The price increases are exaggerated, so I would expect to see setbacks or corrections in the short term because much of the price rises were driven by greater risk-on sentiment and by speculators," said analyst Daniel Briesemann at Commerzbank in Frankfurt. Three month aluminium...
Noranda announces June 3 deadline for creditors to file claims
Noranda Aluminum Holding Corporation has given its creditors until June 3 to file a claim if they want to be paid as the company goes through bankruptcy proceedings. The Jamaican Government is among Noranda’s creditors. It is owed billions of dollars under the bauxite levy and has been trying to recover the money from the company. Noranda’s filing for Chapter 11 bankruptcy protection in February was regarded as a move which could frustrate the Jamaican Government’s efforts to recover the sums an arbitration panel had ruled that Noranda was obligated to pay. It is learnt from an advertisement pertaining to this matter that any person or entity who might have a claim which arose before the February 8 petition date must file a proof of claim on or before June 3. According to the...
Aluminium prices rocket higher from oversold levels
Aluminium was quick to correct lower after stalling at $1,605 early in March, dropping to $1,475. The sell-off attracted buying that led to a rebound to $1,548. Prices then consolidated but have since pushed higher again; the push has turned to a sprint, with prices gaining more than $100 in four days. While prices look overbought in the short term, having been underwater for so long and having put in a solid base that has been tested on various occasions, the rally may well have further to run, analysts suggest. Next resistance is likely to be encountered around $1,646 and $1,655, they opined. Macro factors According to the industry experts, the build-up in cancelled warrants is the main feature of the market – slowly but surely, available LME stocks have shrunk while metal has flowed...
MCX Aluminium remain up on rising demand and global cues
Aluminium along with a few other select base metals strengthened by INR 2 per kg at the non-ferrous market today in India, following pick up in demand from consuming industries coupled with a firm global trend. Traders said besides pick up in demand from consuming industries, a firm global trend kept select base metal prices trade higher. Following are today's metal rates (in INR per kg): • Aluminium ingots INR 156 • Aluminium sheet cutting INR 152 • Aluminium wire scrap INR 152 • Aluminium utensils scrap INR 150
Port of Corpus Christi makes bid to purchase Sherwin Alumina property
The Port of Corpus Christi has put in a bid to buy the property of Sherwin Alumina Co., now wrestling with bankruptcy and a nearly two-year-long labor dispute, federal court records show. The fifth-largest port of the USA has offered a bid totaling $32.9 million, and already has made a $2 million "good faith deposit" with a bank to move the process forward, according to documents filed Monday at U.S. Bankruptcy Court in Houston. The port also looks to spend $13 million in capital, deferred maintenance, and environmental improvements in the area if Sherwin Alumina or another company continues to operate the nonport assets in the production of alumina. The Port Authority on Tuesday authorized its staff to close the purchase of the land. In a letter included in the court filing, John P....
