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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British aluminium foil tray manufacturer i2r creates unique bakery offering
The UK's leading aluminium foil tray manufacturers, i2r Packaging Solutions, have recently launched a range of tulip muffin aluminium foil wraps and greaseproof papers to expand their bakery offering. The initiative aims to position the firm as the only UK manufacturer to provide the baking industry with a one-stop-shop for both aluminium foil containers and FSC accredited tulip paper products, which can be branded and personalised. With a rustic and ‘made-at-home’ feel, filled samples of i2r’s tulip muffin wraps will launch the product on Stand B212 at the forthcoming Farm Shop and Deli Show at the NEC on 18-20th April. The wraps are available in a range of colours and print options. “With the requirement for food-to-go increasing and the demand for branded, personalised paper on the...
LME aluminium to test resistance at $1,539
LME aluminium is expected to test a resistance at $1,539 per tonne, a break above which could lead to a gain to the next resistance at $1,564. The uptrend from the March 24 low of $1,475 has resumed, driven by a wave c. A Fibonacci retracement analysis on the rise from the November 23, 2015 low of $1,432.50 to the March 7 high of $1,605 reveals a target of this wave at $1,564, the 23.6 percent level. The immediate resistance is at $1,539, the 38.2 percent level. Support is at $1,498, the 61.8 per cent level, a break below which could cause a loss to the 76.4 per cent level at $1,473.
Aluminium futures weaken 0.24% on profit booking
Aluminium prices softened by 0.24 per cent to INR 102 per kg in futures trading today as participants booked profits, driven by subdued demand in the spot market. At the Multi Commodity Exchange, aluminium for delivery in far-month May declined by 0.24 per cent to INR 102 per kg in a business turnover of 22 lots. Likewise, the metal for delivery in April shed 0.15 per cent to INR 100.95 per kg in 693 lots. Market analysts said the weakness in aluminium in futures trade was mostly to profit-booking by traders amid sluggish demand from consuming industries in the spot market.
Alcoa reports solid Q1 2016 performance
Lightweight metals leader Alcoa reported solid first quarter 2016 performance. Arconic segments (Value-Add) reported year-over-year profit growth and the Upstream segments, Alumina and Primary Metals, remained profitable despite continued low pricing. The company is on track to complete its separation in the second half of 2016. "Each of our segments delivered strong performance,” said Klaus Kleinfeld, Chairman and Chief Executive Officer. “Profits grew in all of the Arconic segments, led by automotive and aerospace; Upstream segments maintained profitability in a persistently low pricing environment. Productivity was high across the portfolio and we divested non-essential assets to strengthen the balance sheet. We won new contracts for bauxite supply, 3-D printed titanium aerospace...
About half of Chinese aluminium smelters see aluminium prices rise this week
About half of the 48 Chinese aluminium smelters surveyed by SMM expect aluminium prices to rise this week. Those optimists see SHFE 1606 aluminium rising to RMB 11,900-12,000/mt and LME aluminium advancing above USD 1,525/mt. China’s PPI rose 0.5 per cent MoM in March, the first month-on-month rise since January 2014. A series of other Chinese economic data to be released later this week will be positive as well. Long buying was reported after last week’s technical correction. aluminium stocks in China’s five major markets fell 28,000 mt on a weekly basis last Thursday, will head for 400,000-500,000 mt, another positive factor for aluminium prices. Another 42 per cent see SHFE 1606 aluminium stabilizing at RMB 11,650-11,850/mt and LME aluminium stabilizing at USD 1,500-1,525/mt. SHFE 1606...
Alumina upbeat as Alcoa cuts jobs
Australia’s Alumina is confident recent moves to restructure its business will pay off in the near term, after the price of its alumina rallied in the wake of its cost-cutting program. But the group’s joint venture partner, US aluminium giant Alcoa, isn’t as upbeat about the state of the industry and has flagged a large number of job cuts. Alumina’s business is a 40 per cent stake in the Alcoa-managed AWAC alumina alliance. Alumina (AWC) chief executive Peter Wasow, commenting after the release of US-based Alcoa’s quarterly earnings release, said lower alumina prices had negatively impacted profit margins over the first quarter. Aluminium prices had fallen heavily in last half of 2015, taking prices for the intermediate alumina product down in the process. AWAC’s production of alumina was...
Chinese aluminium smelters hit by rising costs from alumina
Majority aluminium smelters in China have been reported to be hit by higher costs in March, especially from alumina, SMM survey found. Average cost at smelters surveyed by SMM rose 3.3 per cent month-on-month in March, driven mainly by 9.6 per cent increase in alumina costs, according to SMM statistics. Looking ahead at April, alumina prices will not see big gains along with growing supply, SMM predicts. Rising coal prices in March will pass through to power costs at smelters, though.
Mixed reactions to extension of Pahang bauxite mining moratorium
Pahang federal government’s decision to extend the moratorium on bauxite mining by three more months is viewed as a move in the right direction for the people’s well-being. Pahang Menteri Besar Adnan Yaakob welcomed the decision and thanked the federal government for taking the move. “It is the best decision for the wellbeing of the people who must always come first,” he said in a text message to the media in Kuantan yesterday evening. Natural Resources and Environment Minister Wan Junaidi Tuanku Jaafar yesterday announced the three-month moratarium on bauxite mining in Kuantan which was supposed to end on April 15, would be extended by three more months. The extension was to enable, among others, the existing bauxite stockpile of almost four million tonnes to be cleared or exported. Stop...
Metro Mining submits environmental statement for Bauxite Hills project
Australian bauxite developer Metro Mining has submitted environmental impact statement (EIS) for the Bauxite Hills project in Cape York to the Queensland Government Department of Environment and Heritage Protection (DEHP). The company said that the latest move marks the commencement of the environmental assessment of the project by the government. Under the approval process, DEHP and relevant referral agencies will assess the adequacy of the statement in response to the government prescribed terms of reference (TOR). In its EIS submission, Metro Mining is seeking approval to develop a five million tonnes per annum (Mtpa) direct shipping ore (DSO) mine at the project. "Given the care that has been invested in the project design, we are confident that all relevant environmental issues have...
Declining US aluminium ingot supply to ratchet up need for imports to meet demand
US primary aluminium production will drop to 0.8Mt in 2016, down from 1.6Mt in 2015. The strong US dollar, relatively high power prices, and low metal prices are behind this major reduction in output. Ingot production will be the hardest hit, but the continuation of slab casting at Alcoa's Warrick plant will lessen the impact on slab. The large fall in US ingot supply will ratchet up the need for ingot imports to meet demand. Despite the best regional dynamics, billet and primary foundry alloy upcharges in the USA will not rise in Q2, as high netbacks (the margin a producer earns) — on low ocean freight rates — encourage higher exports to the USA. Aluminium Ingot taking all the heat In the USA, ingot demand will surge in H2 2016 as Alcoa halts primary production at its Warrick smelter but...
Nalco's captive power plant in trouble
The 1,200 mega watt (MW) captive power plant of National Aluminium Company (Nalco) faces an imminent closure due to lack of facilities to evacuate the slurry. The two ash ponds of the company have been filled to maximum and are hardly in a position to contain more slurry. The company’s proposal to dump slurry in a void coal mine at Talcher, as a long term solution, is pending due to political hassles. Nalco generates about 6,000 tonnes of ash daily at present from its seven 120 MW units. According to official source, Nalco got a void coal mine at Bharatpur in 2010 and accordingly work order was issued to a contractor in 2011 to construct 23 km pipeline from the power plant to mine. The work was to be completed in about two years time but the construction is not over due to lack of forest...
Indian Railways set to hold trial run for aluminium body train
After the launch of Gatiman Express, the country's fastest train, Indian Railways is now going to hold trials for a faster train on the Palwal-Mathura route in May. Manufactured by Spanish locomotive-maker Talgo, the train made of aluminium is lighter and faster than Gatiman and can run at speeds of up to 220 kmph. Anil Saxena, additional director general and public relations officer of Railway Board said, "After Gatiman's successful launch, Railways is expected to conduct a guided trial run between Palwal and Mathura, a distance of 83.8 km, in May. If the trials are successful, then these trains will be operated between New Delhi and Mumbai, cutting the travel time from 17 hours by Rajdhani at present to around 12 hours." "Since the current track on New Delhi-Agra route is capable of...
India-bound 2016 Jaguar F-Pace stands out with its exclusive aluminium built
Jaguar F-pace, the brand new crossover, which debuted at the Frankfurt Motor show and then at New Delhi Auto Expo earlier this year, is all set to hit the roads. It is the 3rd car to be built on Jaguar’s new Lightweight Aluminium Architecture following the XF and the XE. With it, Jaguar aims to gather attributes from other cars in the portfolio – not just the F-Type’s stunning design and performance, but also the XE’s value and accessibility, and the XF’s technology and brand image. What makes F-pace stand out among the recently lauched crossovers is its exclusive aluminium built. Jaguar has overcome a host of cost and formability related challenges and stuck to aluminium as the metal of choice. Such extensive use of aluminium in Jaguar F-pace has also endowed the car with a number of...
Merida launches Scultura Disc bike in carbon-fibre and aluminium frame variants
Merida Bikes International, the German engineered bike nanufacturer has formally announced details of its new Scultura Disc. The new Scultura Disc is available in both carbon-fibre and aluminium frame variants. The carbon-fibre models feature 12mm thru-axles front and rear, and 160mm disc rotors – following a trend in disc brake road bike design that we discussed in an article on road.cc last weekend – and a new means of heat dissipation. The Scultura is Merida’s lightweight race bike, already available in various different rim brake builds including the 4.55kg Scultura 9000 Ltd. “The brand new Scultura Disc… combines the comfortable but also stiff and efficient riding characteristics of the rim brake variant with the general benefits of disc brakes,” says Merida. “The whole...
Henan aluminium processing industry reports production and sales boom
Aluminium processing industry in Henan Province, among China’s top three aluminium producing regions, reported production and sales boom in the first quarter of this year, local media reported. Yidian Holding Group posted notable output growth, and its sales of aluminium plate/sheet, strip and foil soared 48 per cent year-on-year to nearly 110,000 tonnes in Q1, yielding over 20 million yuan profit. The company set output target at 460,000 tonnes and profit target at 350 million yuan in its aluminium processing business this year. Henan Zhongfu Industrial High-Precision Aluminium Co. produced 7,847 tonnes of cold-rolled aluminium products in March, a new record high. The company reported marked month-on-month fall in production costs, and power consumption, etc. Wanji Holding Group’s...
LME aluminium neutral in a range of $1,498- $1,519
LME aluminium was neutral in a range of $1,498- $1,519 per tonne last week, and an escape will point a direction. The range was formed by the 61.8 per cent and the 50 per cent Fibonacci retracements on the rise from the November 23, 2015 low of $1,432.50 to $1,605. A rise above $1,519 could be extended to $1,539, the 38.2 per cent level, while a break below $1,498 could cause a loss to the 76.4 per cent level at $1,473. The bias could be towards the upside, as the wave pattern suggests the gain from the from the March 24 low of $1,475 consists of three waves, with the third wave labelled c yet to travel towards $1,539.
LME aluminium to face technical correction
LME aluminium is likely to face technical correction early this week and move at USD 1,505-1,530/mt, predicted SMM. China’s March CPI and PPI are expected to beat forecast. SHFE 1606 aluminium will move at RMB 11,700-11,800/mt, with market sentiment improving. In China’s spot aluminium market, spot discounts of RMB 0-20/mt and spot premiums of RMB 0-20/mt are expected over SHFE 1604 aluminium contract.
Andhra Pradesh govt cancels bauxite supply deal with Anrak Aluminium
In a major blow to India's Anrak Aluminium Limited, the Andhra Pradesh government has issued orders for cancellation of bauxite supply agreement made between APMDC (AP Mining Development Corporation) Limited and Anrak Aluminium Limited (AAL). The decision has now raised a question mark on production from AAL which has completed construction of its alumina refinery at a cost of nearly INR 7,000 crore at Rachapalli in Makavarapalem Mandal in Visakhapatnam district nearly three years ago. In 2007, the then YS Rajasekhar Reddy government had entered into an MoU with the government of Ras Al Khaimah (one of the emirates of UAE) for mining about 224 million tonnes of bauxite from the Jerrela Group of deposits in Vizag. Consequent to the MoU, the government of Ras Al Khaimah formed Anrak...
