AL Circle Analysis: US scrap imports hit 580kt as China slips 3.2%, who drives aluminium recycling?
Aluminium scrap is no longer a side story in the metal’s market. Rather, aluminium’s next standoff is over scrap. As US imports surge 37 per cent while China’s purchases decline, manufacturers in Europe and India are confronting a common challenge of securing affordable, reliable raw materials. With recycling rates, trade barriers and low-carbon production reshaping market, the global industry faces a critical question: who will control the metal that powers its circular future? Join the fourth edition of the webinar "Hedging for recyclers - Become an expert in 6 hours" by Jorge Dyszel. A 1.1-billion-tonne stockpile: US stocks up, China steps back, India asks for access The US imported 580,000 tonnes of aluminium scrap worth USD 2.07 billion in H1 2026 , with Canada accounting for 63.62...
A should-cost analysis of an aluminium tower furnace in India: Comparing the economics of LPG, PNG, and electric energy sources
In precision non-ferrous casting and high-volume die-casting operations, thermal energy conversion represents one of the largest controllable operating expenses. In modern aluminium foundries, where margins are squeezed by primary metal price fluctuations and stringent customer cost breakdowns, even a modest INR 1–2/kg variance in liquid metal melting cost can translate into tens of lakhs of rupees in annual cost differences. A rigorous, transparent should-cost benchmark is therefore essential for procurement teams, foundry managers and strategic sourcing leaders. This analysis examines a baseline should-cost model for a 1,000 kg/hour aluminium shaft or tower furnace in an industrial foundry. It compares liquefied petroleum gas (LPG), piped natural gas (PNG) and electric energy across...
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US primary production falls 25% in January YOY
According to USGS Mineral Industry Survey for Aluminum in January 2016, domestic primary aluminum production in US in January 2016 was 106,000 metric tons (t). The average daily production was 3,430 t, 6% less than the daily production during the preceding month and 25% less than that in January 2015. The monthly average U.S. market price of primary aluminium ingot decreased to $0.764 per pound in January 2016 from $0.769 per pound in December 2015 (fig. 2). The monthly average price increased to $0.783 per pound in February 2016. Inventories of primary aluminum in London Metal Exchange Ltd. approved warehouses in the United States were 420,000 t at the end of January. Inventories continued their downward trend, decreasing to 384,000 t at the end of February 2016, their lowest level since...
China ramps up aluminium output as 20% rally allows restarts
Aluminium smelters in China, which supply more than half the world’s metal, are restarting idled plants after a price rally, according to the industry group that brokered an agreement in December to curb capacity. As much as half of Chinese smelter capacity is profitable at current prices, Wen Xianjun, deputy chairman of the China Nonferrous Metals Industry Association, said in a phone interview, adding the restarts weren’t a breach of the December accord because the pact allowed for flexibility in production. Prices of the metal used to make everything from window frames to aircraft have climbed more than 20 percent from a low in November on the Shanghai Futures Exchange as Chinese policy makers signaled their willingness to bolster growth. The new production may reverse a decline in...
Alcoa signs bauxite supply contracts worth more than $350 million
Alcoa, the world’s largest bauxite miner, today announced that Alcoa World Alumina and Chemicals (AWAC) has secured multiple bauxite supply contracts valued at more than $350 million over the next two years. Under the contracts, the Company will supply bauxite to external customers from three of its global mines as it continues to successfully build its third-party bauxite business. The new contracts cover customers in China, Europe and Brazil. “With our quality resources and deep technical expertise, we are well positioned to deliver a stable supply of bauxite to customers across the global alumina industry,” said Garret Dixon, president of Alcoa Mining. “Our strategy is to profitably grow our third-party bauxite sales and these contracts demonstrate that we are well on track.” Alcoa is...
Chinese production down; Non-Chinese production up
Aluminium in China jumped to its highest price point in about six months. Chinese production seems to have fallen sharply over December and January which would help explain the strength of the local rally in prices. Meanwhile, according to the International Aluminium Institute (IAI), non-Chinese global output rose by 3.7 per cent in the first two months of 2016, an acceleration from growth of 2.5 per cent in 2015. That’s a surprising outcome for a market burdened by high stocks and with prices hovering near a six-year low. Higher production excluding China has also led to steady aluminium Midwest premiums, which are hovering near $0.09 per pound. Aluminium has also recently moved from backwardation to contango as new supply has come in. Aluminium prices missing the broad metals rally...
'Berserk' aluminium boom signals bauxite bonanza for China's quarry
Key aluminium ingredient bauxite is shaping up as China's newest obsession in its mission to secure raw materials and once again minerals-rich Australia is a major target. China's investment in Australia's mining industry plunged, along with the global commodities rout, dropping in 2015 to the lowest since 2008 as surging supplies created gluts of materials including oil and iron ore. It's a different story unfolding for bauxite, with a potential step up in interest led by Aluminium Corp of China, known as Chinalco, which confirmed it's looking at investing in projects in Australia. Demand in China for the aluminium needed in air conditioning units to airliners will rise by almost a third by 2020, according to Morgan Stanley, while the nation's supplies of adequate raw materials to...
Japanese architecture firm clads art centre in porous aluminium panels
Kengo Kuma and Associates has built an art centre with an intricate aluminium-moulded facade at a former cotton mill in China, which has been converted into a shop and office complex. Kengo Kuma's Japan-based firm converted the entire 10,440-square-metre mill to create the new retail, office and art centre called Wuxi Vanke, which is located near Taihu Lake on the outskirts of Shanghai. The art centre occupies an extension to the old brick building. Its complex facade comprises hundreds of cast aluminium panels, which are arranged in an alternating pattern of solid and void to give the building a wavy outline. The porous form of the metal panels is modelled on Taihu stone, a type of limestone with water-worn hollows and perforations common in the region. Each piece of aluminium was cast...
Chinese aluminium smelters to benefit from power reform
Chinese aluminium smelters will stand to benefit as China vows to expand power transmission and distribution reform to more regions, SMM understands. The reform will cover another seven provinces and one more region in 2016 and the whole country by 2017, China's National Development & Reform Commission (NDRC) announced recently. Power tariff cuts in the initial five provinces covered by the reform totaled 5.56 billion yuan in 2015. Another five provinces, namely Yunnan, Ningxia, Guizhou, Anhui and Hubei, were added in the reform in 2015, according to announcement by the NDRC.
About 51% of Chinese aluminium smelters see aluminium prices rise this week
About 51 per cent of the 45 Chinese aluminium smelters surveyed by SMM expect aluminium prices to rise this week. Those optimists see SHFE 1606 aluminium rising above RMB 12,000/mt and LME aluminium advancing above USD 1,550/mt. First, aluminium stocks in China’s five major markets fell sharply. It will take only about six weeks for aluminium stocks China’s five major markets to drop to 400,000-500,000 mt at current destocking pace. Aluminium prices used to get support when stocks fell to 400,000-500,000 mt during 2013-2015, and this year will be no exception. Second, improved downstream consumption and Chinese macro-economic data will also bode well for aluminium prices. Third, technical side is positive for SHFE aluminium. Another 38 per cent see SHFE 1606 aluminium stabilizing at RMB...
US aluminium smelting industry decline likely to have far-reaching consequences
An important part of the dramatic shift in global aluminium supply seen this century is the decline of primary production in the USA. While production in the Middle East has jumped from 0.9 million tonnes (Mt) in 1999 to an expected 5.7Mt this year, and Chinese primary production has skyrocketed from 2.6Mt in 1999 to reach 31.2Mt in 2015, production in the USA has fallen from 3.8Mt in 1999 to an expected 0.7Mt this year. Analysts opine this major decline will likely have consequences over the long term. According to them, the sources of this decline in US production are: • The Pacific Northwest (PNW) energy crisis in the early 2000s, • Low aluminium ingot price, and • Loss of competitive position in the global industry. Aluminium prices have been falling in real (inflation-adjusted) terms...
HP unveils the world's thinnest laptop made from aluminium, carbon fibre
A new laptop unveiled by HP today will be the thinnest in the world. At 0.4 inches (10.4mm) thick, the Spectre 13 Ultrabook is thinner than AAA batteries and both thinner and lighter than Apple's 13-inch MacBook Air. It breaks the previous record held by its own 0.49-inch thick (12.4mm) EliteBook Folio G1 enterprise Ultrabook. In terms of weight, the new copper-toned notebook is not the lightest device around, weighing 2.45 pounds (1.11kg). Most of the body is dark grey aluminium with bronze along the sides. "Carbon fibre and aluminium craftsmanship give this device the look and feel of pure luxury. The two-tone finish on the copper-coloured spine is an example of the beauty of contrast," the company said. A big difference with this new model is that the new Spectre is powered by Intel...
Uni-body casing of G5 smartphone is composed of special aluminium alloy, confirms LG
In response to the recent furor over LG G5 smartphone make after reviews started flowing in from various markets where it has been launched, the mobile phone manufacturer has released a statement confirming “unequivocally” that the LG G5 unibody casing is built from aluminium. The handset’s design first came into question when a video released on a leading social media site showed that on being scratched, the outer layer of the handset revealed a plastic like casing. But LG completely denies that its new flagship smartphone is built from anything other than metal. “Contrary to erroneous reports online that the LG G5 body is composed of plastic, LG would like to state unequivocally that the uni-body casing of the G5 is composed of a special aluminium alloy, LM201,” writes LG. According to...
Kobe Steel to spend $900 mln to bolster aluminium supplies for cars, planes
Japan's Kobe Steel Ltd will spend 100 billion yen ($900 million) over the next five years to boost steel and aluminium supplies to automakers and aircraft manufacturers as it looks to drive growth and counter faltering demand in China. Steel producers in high-cost countries say their best hope for surviving the global glut is to develop higher value specialised products although they will still face a tough time competing with low-cost Chinese producers. Under a new five-year business plan announced on Tuesday and starting this month, the country's third-biggest steelmaker aims to bolster its recurring profit, pre-tax before one-off items, to 140 billion yen in the year through March 2021, against an estimated 25 billion yen in the year just ended. In an effort to differentiate itself...
ESI Group introduces comprehensive cast simulation software for aluminium die casters
ESI Group, pioneer and world-leading solution provider in Virtual Prototyping for manufacturing industries, announces its participation at CastExpo,16-19 April 2016 in Minneapolis, MN, USA. Sponsored by the American Foundry Society (AFS), CastExpo is the largest metal casting trade show in North America. ESI will showcase on booth 1915 its leading casting simulation software, ProCAST, which addresses a large number of casting processes for diverse metals and alloys including aluminium die casting. Developed over the past 25 years, ProCAST has helped foundries across industries, improve aluminium die cast part quality, reduce manufacturing defects, and lower scrap rates. ESI ProCAST is a versatile, precise and comprehensive casting simulation solution, enabling foundries to tackle easily...
Pakistani auto part manufacturers push for exemption from steel and aluminium import duties
The Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) has urged the Federal Board of Revenue (FBR) to immediately withdraw the new regulatory duty on all raw materials that they import. The government has recently imposed 15 per cent additional import duty on different steel products. However, this has caused problems for the auto industry that imports various steel raw materials under the common Pakistan Customs Tariff (PCT) codes. The intention behind levying duties on steel and other metal imports including aluminium was to protect the local industry in the face of dumping by Chinese manufacturers that resulted in underutilisation of local plants. The association did appreciate the imposition of duty to protect the local metal industry, but asked the...
India’s Supreme Court rejects bauxite mining in Odisha’s Niyamgiri Hills
India’s Supreme Court ruled on April 1, Friday last week, that it could not issue an order for bauxite mining to begin in Odisha without getting input from local governments and other stakeholders in the area. The court required that the Odisha Mining Corporation add the fourteen gram sabhas (local councils) that objected to the move as parties to the suit. The firm approached the councils anew in order to seek permission to conduct mining in the bauxite-rich Niyamgiri hills. The controversy began in 2010 when Odisha Mining and Vedanta formed a joint venture to seek government approval to conduct operations in Niyamgiri hills. The move led to protests by the local Kondh tribal people, who established a committee to determine whether the joint venture complied with the relevant...
Aluminium stocks continue falling in China major markets
Aluminium stocks continued falling significantly in China’s five major markets, SMM says. More ingots flowed to central and southwest China from northwest China. Smelters in northwest China increased shipment of aluminium liquid, also reducing the amount of ingots available for sale. It will take about six weeks for aluminium stocks in China’s five major markets to fall to 400,000-500,000 tonnes at current destocking pace, SMM expects. The table below shows details of aluminium stocks at China’s five major markets:
Mumbai gets a revamped fleet of 83 full-aluminium bodied buses
BEST (Brihanmumbai Electric Supply & Transport Undertaking) in Mumbai got a revamped fleet of 83 buses last Sunday at a cost of INR 7 crore, with 147 more to arrive in the coming weeks. The buses have aluminium bodies, which will not corrode in Mumbai's weather, and a host of other features, including mobile charging points and a blower unit for drivers. The charging points have been introduced for the first time in non-AC buses in the country, officials said. Senior officials said the new fleet, created by remodelling some steel-body buses, will roll out from this week, promising a comfortable ride to commuters on busy office routes during peak hours. "The steel bodies would corrode during the monsoon and there would be complaints of buses rattling and roofs leaking. We have solved the...
GG Glass and Glazing’s new Supertrucks feature aluminium extrusions
GG Glass & Glazing, one of the UK’s leading contract glazing specialists, has opted for Supertrucks built from aluminium extrusions, for transporting glass sheets to retail outlets and other commercial premises where it supplies its range of products. Based on 7.5-tonne Isuzu chassis, the vehicles feature an innovative double A-frame design concept. This offers four facings and means sheets of glass measuring more than 3.2 metres in height and 4.5 metres in length can be crane-loaded from the rear. The first of the new trucks is now working from the GG Glass and Glazing’s Liverpool headquarters, with the second due to enter service shortly at a depot in Leeds, one of six which the company operates nationwide. St Helens-based Supertrucks, meanwhile, is the country’s number one manufacturer...
