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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Profit expands at Chinese aluminum smelters
Chinese aluminium smelters have posted better profit thanks to continuous aluminium price rise, SMM learned. Profit at those covered in SMM’s survey sample to 900-1,000 yuan per tonne in the week ending April 15. Raw material costs changed little. Smelters in southwest China told SMM that local governments might not offer additional power tariff subsidies now that rising aluminium prices have improved smelters’ profitability. As such, local smelters have no intention of increasing production for now. As of April 18, spot aluminium in Shanghai market traded at 11,940-11,950 yuan per tonne.
Rio Tinto releases robust Q1 results: Aluminium production touches 887kt
Rio Tinto released robust production results for first quarter of FY2016. Despite global slump in aluminium prices, the mining and metal major posted a significant ten per cent increase in aluminium production year-on-year for the period under review. Kitmat completed its ramp-up to an annualised rate of 420 thousand tonnes in March 2016. Production across the Saguenay smelter system increased by four per cent compared with the first quarter of 2015 as a result of ongoing productivity improvements. 2016 guidance Rio Tinto's expected share of production of aluminium remains unchanged at 3.6 million tonnes for 2016. Rio Tinto chief executive Sam Walsh said “These results demonstrate our commitment to operational excellence in 2016, with notable improvements in several important areas,...
Nalco eyes 68.95 lakh tonnes of bauxite
The National Aluminium Company Limited (Nalco) targets to produce 68.25 lakh tonnes of bauxite and 21.50 lakh tonnes of alumina from its mines and refinery unit at Damanjodi in Koraput district during the current fiscal year. "In 2015-16, we broke all our records by producing 63.4 lakh tonnes of bauxite and 19.53 lakh tonnes of alumina at our Damanjodi unit," said chairman-cum-managing director Tapan Kumar Chand. In the coming years, Nalco will emerge as a global player in mining, metal and energy sectors. There would be a major turnaround in the business plan of the company to meet the turbulent business environment, he added. Chand felicitated 30 outstanding achievers, including operators to assistant general managers, of mines and refinery unit with CMD Excellence Awards, which carries...
Rio Tinto's Q1 2016 bauxite production rises 6% YoY
Rio Tinto released robust first quarter production results for FY2016. Despite weakness in global commodity prices, the mining and metals giant reported year-over-year increase in production of bauxite, the prime ore for aluminium production. Bauxite production of 11.1 million tonnes during the first quarter of 2016 was a six per cent increase on the first quarter of 2015 and was in line with the previous quarter. Strong performance in ramping up the Gove mine increased production by 30 per cent to 2.2 million tonnes and record production at Sangaredi(CBG), at 1.9 million tonnes, was 16 per cent higher compared with the first quarter of 2015. Third party shipments of 6.8 million tonnes were six per cent higher than the first quarter of 2015.
Japan aluminium stocks fall 5.5% in March
Aluminium stocks at three major Japanese ports stood at 345,600 tonnes at the end of March, down 5.5 per cent from a month earlier, trading house Marubeni Corp said on Friday, April 15. Marubeni collects data from the ports of Yokohama, Nagoya and Osaka.
USTR signs trade agreement with China on ending aluminium export subsidies
The People’s Republic of China has agreed to end export subsidies that have helped to drown the aluminium market (among others) in an oversupply of the metal. United States Trade Representative Michael Froman made the announcement regarding an agreement ending the subsidies in question last week Wednesday. “Today we have signed an agreement with China to eliminate export subsidies that the United States challenged because they are prohibited under WTO rules,” said U.S. Trade Representative Michael Froman. “This is a win for Americans employed in seven diverse sectors that run the gamut from agriculture to textiles to medical products, who will benefit from a more level playing field on which to compete. This agreement once again underscores that President Obama’s commitment to enforce our...
Vedanta kicks off ramp up of second aluminium smelter at Jharsuguda
Diversified metals and mining major Vedanta Resources has initiated the ramp up of its second aluminium smelter at Jharsuguda. Vedanta aims to commission two potlines of the smelter to reach a capacity of 0.6 million tonne per annum (mtpa) by the end of this financial year. The second smelter with a rated capacity of 1.25 mtpa is located within the product specific SEZ (Special Economic Zone) developed by Vedanta close to the site of its standalone smelter. "The second smelter at Jharsuguda has been lying idle for three years mainly due to want of power. Now that we have got a favourable order from the state power regulator to use two units (600 Mw each) from our own power plant (of 2400 Mw capacity), we are in a position to expand capacity of this smelter. We have also decided to raise...
LME aluminium to take hit from falling crude oil
Base metals are expected to fall today, dragged down by crude oil prices. No agreement was reached at the Doha meeting on crude oil freeze plan. The next meeting on oil issue will be held in June. Crude oil prices plunged 6 per cent after opening during Asian trading hours, and are expected to fall initially before rising this week, weigh down base metals. This will weigh ME aluminium down to USD 1,530-1,550/mt on Monday. SHFE 1606 aluminium is expected to drop to RMB 11,840-11,950/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.
Ma’aden announces interim financial results for quarter ended on March 31
Saudi Arabia Mining Company (Ma'aden) announced Sunday the interim financial results for the quarter ended on March 31 (three months). Financial highlights of the quarter vs same quarter last year Revenue declined by 17 per cent due to lower commodity prices for all products and decrease in aluminium sales volume. The average realized prices DAP and ammonia declined by approximately 30 per cent, whereas aluminium prices (including premium) declined by around 25 per cent compared to the same quarter of last year. The impact of profitability from the decline of revenues was partly offset by 16 per cent reduction in cost of sales through lower raw material costs and the effects of the company's ongoing initiative to reduce operating costs. This initiative led to a reduction in exploration...
Ikea readies to launch its first flat-pack aluminium bicycle
Swedish furniture giant Ikea is all set to take on the transport market by launching a self-assembly aluminium bicycle. In grand Ikea tradition, the new product will receive a guttural Scandinavian moniker – the Sladda, Swedish for "to skid" or "to slip sideways". Made in partnership with Veryday, a design studio whose clients range from Swedish supercar maker Koenigsegg to Scandi-stroller firm BabyBjörn, the new unisex bicycle will be available in one colour, two sizes, and have a host of customisable add-ons and extras. The aluminium bicycle is being billed as a lightweight, low-maintenance bike perfect for urban living. "Sladda is like a tablet with apps," says Oskar Juhlin, Director of Industrial Design at Veryday, "in the sense that you can customise it with several different...
Gravita India starts aluminium recycling at Jaipur plant
Shares of Gravita India rose 4.3 per cent intraday Monday as it has started commercial production of aluminium alloys. The company has made an entry into aluminium recycling at its new recycling plant at Phagi, Jaipur with an initial capacity of 6000 MTPA of aluminium alloy production. The company will be manufacturing aluminium automobile alloy by recycling aluminium scrap. "This entry into aluminium recycling will not only help in reducing India's carbon foot prints but will also enhance the recycling DNA of the group," company said in release. At 09:51 hrs Gravita India was quoting at INR 24.65, up INR 0.45, or 1.86 per cent on the BSE.
UK aluminium packaging recycling rate underestimated by 10,000 TPA
A study commissioned by the Aluminium Packaging Recycling Organisation (Alupro) into the UK’s ‘real’ recycling rate for aluminium packaging in 2015 has revealed that over 10,000 tonnes of material went unreported. According to official figures the UK’s recycling rate for all aluminium packaging hit 55 per cent in 2015, up from 48 per cent. However, Alupro added that the estimated recycling rate for aluminium drinks cans has reached 69 per cent, up from 60 per cent, but the figures could be even higher, according to a study commissioned by Alupro. It also noted that according to packaging waste recovery data recently released by the Environment Agency the “business” recycling rate for all aluminium packaging exceeded its 2015 target (49 per cent), reaching 76,027 tonnes. The research...
Alba appoints Bechtel as EPCM contractor for Line 6 Expansion Project
Aluminium Bahrain B.S.C. (Alba), the Bahrain-based leading international aluminium smelter, is pleased to announce International Bechtel Co. Ltd. (Bechtel) as the Engineering, Procurement, and Construction Management (EPCM) contractor for its landmark Line 6 Expansion Project. Under the terms of the contract, Bechtel will be responsible to design and construct the sixth potline as well as support industrial services. Alba will be the world’s largest single-site aluminium smelter upon completion of the Line 6 Expansion Project, which will boost its production by 540,000 metric tonnes per annum (mtpa) bringing Alba’s total production capacity to 1,500,000 mtpa. Line 6 will have 424 pots that will use the proprietary EGA DX+ Ultra technology thus significantly increasing operating...
ARENA backs plan to use solar energy for alumina refining
A project that could lead to the use of solar thermal technology by Australia’s large industrial sector – and cut its reliance on fossil fuels in half – has been selected by the Australian Renewable Energy Agency in its latest round of funding. Led by the University of Adelaide, the project will work with Australian aluminium giant Alcoa to evaluate the potential for using concentrating solar thermal technologies to generate the industrial process heat used in its alumina refineries in Australia and beyond. The $15 million project – which ARENA chief Ivor Frischknecht has described as “essential” – was awarded a $4.5 million from the Agency, making it “the biggest project in the round by far.” “This is about turning bauxite into alumina. It uses a huge amount of heat,” Frischknecht said...
Noranda gets go-ahead for ending its bauxite supply contract with Sherwin Alumina
An American bankruptcy court judge has given the go-ahead for Noranda Bauxite Limited (NBL) to pull out of its lossmaking, long-term contract to supply Jamaican-mined ore to Sherwin Alumina Company for its refinery at Gramercy on the US Gulf Coast, saying that maintaining the deal would make it difficult for Noranda to reorganise its business and emerge from bankruptcy. "NBL has met its burden of proving that the rejection of the Sherwin contract is an exercise of sound business judgement, showing that it is in the best interest of the estate," Judge Barry S. Shermer of the US Bankruptcy Court of the Eastern Distinct of Missouri, said in his ruling issued a week ago. "Overall, the evidence shows that rejection of the Sherwin agreement is necessary if NBL is to effectuate a restructuring....
$40m bauxite mine at Weipa shows promise for 250 jobs next year
A new $40 million bauxite mine is on track to start production next year with jobs for up to 250 people over the life of the project. Bauxite Hills, north of Weipa on Western Cape York, has a Direct Shipping Ore resource of 65.3 million tonnes, worth about $3 billion at today’s prices, and a mine life in excess of 13 years. Metro Mining chief executive Simon Finnis said the Environment Impact Statement had been submitted to the Department of Environment and Heritage Protection, another key milestone. He said it appeared the company was on track to begin mining by September 2017. “Metro believes final determination of the EIS may be achieved later this year, enabling site construction to start straight after the wet season, and mining operations to commence in September next year,” Mr...
JNARDDC with NALCO develops high strength ceramic balls from bauxite ore and flyash
The Jawaharlal Nehru Aluminium Research Development and Design Centre (JNARDDC) has developed a unique product; very high strength ceramic balls or granules made from one of the waste components (partially lateritized khondalite or PLK) of bauxite ore and flyash. The centre is in the process of developing these balls using another waste found in the ore saprolite. These small balls (measuring just 0.5mm to 1.5mm) are technically called proppants and used by oil and gas industry in exploration for oil. The balls developed by JNNARDC cost just INR 2,000 per tonne, as compared to the as yet imported variety costing INR 20,000 per tonne. JNARDDC has already patented the technology. The imported ceramic balls have an unusual strength of 10-12,000 pounds square inch (psi) and are used by the...
Aluminum Extruders Council to develop industry-wide EPD
The Aluminum Extruders Council (AEC) announced that it has launched a program to develop a set of industry-sanctioned Environmental Product Declarations (EPDs) that will document the environmental performance of aluminium extrusions produced in the U.S. and Canada. An EPD is an independently verified document that communicates information about the lifecycle environmental impact of the subject product(s). Created and verified in accordance with International Standard ISO 14025, EPD’s include information on the impact of raw material acquisition, energy use, emissions, waste generation, etc. In North America, EPDs are increasingly being requested, both to meet the requirements of the upcoming v4 of the Leadership in Energy and Environmental Design (LEED) Green Building Program and to meet...
