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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Altech Chemicals Ltd in ASX trading halt
Altech Chemicals Ltd has advised that it is aiming to become one of the world's leading suppliers of 99.99 per cent (4N) high purity alumina (HPA) (Al2O3). HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of artificial sapphire. Altech is currently heading to market with a capital raising, and the ASX has granted a trading halt to prepare. The halt will remain in place until the opening of trade on Wednesday 23rd March 2016, or earlier if an announcement is made to the market.
Orbite provides further update on HPA project
Orbite Technologies Inc., further to its press release of March 15, 2016, has provided an update on the company's progress towards high purity alumina (HPA) plant completion and commissioning. • As indicated in the company's March 15 press release, due to additional financing requirements, management has temporarily scaled down the number of external contractors on site to reduce working capital requirements. • While this slows down certain construction activities, Orbite employees continue commissioning activities as described in the company's press releases of March 7 and March 15, 2016. • Additionally, Management is reviewing its project execution structure to promptly address deficiencies from its project management and engineering teams. • Concurrently, Management is working on a...
India mines ministry gives its nod to increase Odisha’s bauxite mining lease area
The Ministry of Mines (India) has given its consent to increase the lease area for mining of the mineral from 10 sq. km to 50 sq. km. in the state of Odisha. This is expected to bring economies of scale and increase production of bauxite in the country. Deepak Kumar Mohanty, director of mines, government of Odisha said in a recent interview, “We had written to the mines ministry (in the first week of February) seeking its approval for increasing the cap for prospecting-mining-cum-mining-lease and mining lease, which has been allowed.” Bauxite is a raw material used for production of aluminium with Odisha accounting for 60 per cent of India’s estimated bauxite reserves of 593 million tonnes (MT). Odisha is also the largest bauxite producer and accounted for 35.24 per cent, or 7.64 MT, of...
British furniture brand to display aluminium select range in its new showroom
Luxury British home and garden furniture brand, Bridgman is offering one lucky reader the chance to WIN a Mayfair Dining Table and 4 Chairs (worth £789) to celebrate the official opening of its new Wilmslow showroom. Family run Bridgman has been designing and manufacturing the highest quality indoor and outdoor furniture made of futuristic material such as aluminium for UK gardens and interiors, as well as leading hotels and restaurants across the globe, since 1977. The latest showroom opening, Bridgman Wilmslow, sees the company bringing its expertise and handmade craftsmanship to Cheshire with a 2,200 sq ft space on Bank Square. The showroom is set to display a wide selection of Bridgman's signature outdoor and conservatory ranges made from highly desirable 'All Seasons' and...
Falling China aluminium stocks to lift prices this week
Aluminum prices will gain momentum from falling aluminum stocks in China’s five major markets, which have posted their first declines since after the 2016 Lunar New Year holiday. SMM sees SHFE 1605 aluminum challenging resistance at 11,500 yuan per tonne and spot discounts in China narrowing to 30-70 yuan per tonne. LME aluminum looks set to advance to $1,520-1,560 per tonne on the back of a softer dollar and rising crude oil prices.
Spot demand, global cues lift aluminium futures by 0.59%
Aluminium prices edged up 0.59 per cent to INR 101.90 per kg in futures trade today as participants enlarged positions, supported by strong demand in the spot markets amidst a positive trend in the base metals pack at the London Metal Exchange (LME). Aluminium for delivery in current month edged higher by 60 paise, or 0.59 per cent, to INR 101.90 per kg in a business turnover of 629 lots in futures trade at Multi Commodity Exchange. Likewise, the metal for delivery in April traded higher 45 paise, or 0.45 per cent, to INR 103.45 per kg in 64 lots. Marketmen said apart from increased domestic demand, a firming trend at the LME as the recovery in China's property market accelerated, triggering optimism of demand recovery in the world's biggest commodities consumer, helped aluminium futures...
Aluminium Smelter Company of Nigeria to begin production
The embattled Aluminium Smelter Company of Nigeria (ALSCON) in Akwa Ibom State is to begin production soon, its Managing Director, Mr. Dimitry Zavyalov, has said. He said this while briefing the Clan Head of Ikpa Ibekwe, Etebom Akpan Akpan and his council in Ikot Abasi. He said the company would bounce back, irrespective of the difficult period it is facing. “The Management of UC-RUSAL Aluminium Smelter Company of Nigeria (ALSCON), the new owners of ALSCON, will not relent in exploring available possibilities with appropriate authorities for ALSCON to come back to life,’’ he said He stressed the importance of aluminium and the technicalities involved. He said the production of aluminium products required professionals. Zavyalov, however, said only committed workers would be re-absorbed...
AP Govt cancels land allotment to AnRAK for sourcing bauxite
In a significant development, the State Government of Andhra Pradesh is understood to have cancelled the allotment of land to AnRAK Aluminium Limited in the Visakhapatnam Agency. The land was peviously alloted to AnRAK Aluminium for sourcing bauxite for its proposed alumina refinery. The then Congress government headed by Y.S. Rajasekhara Reddy had entered into an agreement with AnRAK promoted by the Government of the emirate Ras-al-Khaimah, for supply of bauxite to Anrak’s refinery at Rachapalle in Makavarapalem mandal. The government signed a memorandum of understanding with AnRAK for setting up of an alumina refinery plant and an aluminium smelter. In all, 1,212 hectares of forest land in Jerrela and Sapparla blocks in the Visakhapatnam Agency areas had been allotted to the company to...
Altech Chemicals updates on capital raising
Altech Chemicals Limited has updated that further to the suspension of the trading of its securities on the ASX pre-open this morning, Perth stockbroking firm DJ Carmichael Pty Ltd is co-ordinating a placement of fully paid ordinary shares of the company to a variety of professional and sophisticated investors (the Placement). It is the intention of the company to announce details of the Placement pre-open on Wednesday 23 March 2016. In addition to the Placement, the company intends to conduct a Share Purchase Plan (SPP), whereby existing shareholder of the company can subscribe to a maximum of $15,000 of new shares, at the same price as the Placement shares. The company intends to also announce details of the SPP on 23 March 2016. Funds raised by the Placement and the SPP will be applied...
Prysmian launches new cable solution with aluminium conductor
Prysmian Group, world leader in the energy and telecom cable systems industry has gained verification of its higher voltage cable system technology for offshore wind inter-array networks. The Group announces the successful completion of type testing of its 66 kV cable system with aluminium conductor in accordance with CIGRE and IEC test protocols, as part of the Carbon Trust’s Offshore Wind Accelerator (OWA) programme. “This new qualification milestone is a further advance along our path towards the development of innovative, sustainable and cost effective cable solutions for the offshore renewable power industry” stated Raul Gil, Prysmian PowerLink Chief Operating Officer “Prysmian is both prepared and fully geared to support the global offshore wind market, such as the UK’s Round 3...
Department of Commerce initiates circumvention investigation on 5050 Alloy Extrusions
The U.S. Department of Commerce (DOC) last Tuesday issued its long-awaited circumvention decision in the Aluminum Extruders’ petition against China Zhongwang. The DOC decided that while 5050 alloyed aluminum extrusions are not expressly covered by the scope of its orders, it initiated an anti-circumvention investigation to determine whether imports of 5050 alloyed extrusions have been circumventing the AD/CVD duties. The Department concluded that, “based on the information provided by Petitioner, the Department finds there is sufficient basis to initiate an anti-circumvention inquiry, pursuant to sections 781(c) and 781(d) of the Act. The Department will determine whether the merchandise subject to the inquiry (identified in the “Merchandise Subject to the Anti-Circumvention Inquiry”...
Norsk Hydro Annual Reporting 2015: Creating value by becoming better, bigger, greener
“The world around us has shifted significantly and fast - again. A year ago, we experienced undersupply and record-high aluminium premiums. Shortly after, Chinese oversupply and rising exports pushed aluminium prices to 6-year lows. I am happy to report that Hydro’s improvement efforts has continued independently with undiminished intensity, giving benchmark results and improved ability to stay the course. We have in total delivered NOK 4.5 billion in annual improvements since 2011. That does not mean improvements have come to an end, and we are always seeking the next milestone. On our Capital Markets Day in December we launched a new ambition aiming to realize new annual improvements of another NOK 2.9 billion by 2019,” President and CEO Svein Richard Brandtzæg writes in his letter to...
Aluminium stockpiles fall as LME tightens warehousing rules
Traders pulling metal out of London Metal Exchange warehouses is not an uncommon practice. The amount stored in depots tracked by the world's biggest metals bourse has almost halved from a 2013 peak and is near a seven-year low. Aluminium along with a certain other non-ferrous metal has accounted for the bulk of the decline. Aluminium stockpiles have been falling as the LME tightens warehousing rules to prevent queues from building. Traders have also been moving metal outside of the network to benefit from cheaper storage charges, according to Societe Generale SA. Aluminium inventories now are near a seven-year low and more withdrawals are being speculated. Orders to remove metal surged 26 per cent on Thursday last week, on requests to get the commodity out of depots in Vlissingen, and...
Nalco draws up INR 37,000-cr plan for expansion, diversification
State-owned aluminium major National Aluminium Co Ltd is planning to invest over INR 37,000 crore over the next 5-7 years for expansion of existing facilities, setting up of new smelter unit overseas, development of mines and diversification in power. Reducing expenses According to Tapan Kumar Chand, Chairman-cum-Managing Director, Nalco, the company is undertaking the investment plan to reduce operational expenses and to beat the depressed market realisations. “Over INR 37,000 crore will be spent over the coming 5-7 years. Focus will be on reducing costs of producing aluminium by achieving higher economies of scale,” the CMD told BusinessLine. Brownfield expansion and tie-ups with low power producers overseas is its two-prong strategy to wriggle out of “subdued market conditions.” The...
Appeal for bauxite mining to resume in Pahang
Pahang mineral operators have submitted a memorandum to the Natural Resources and Environment Ministry urging the authorities to reactivate bauxite mining. Pahang Mineral Operators Association vice-president Yap Soon Huat handed over the memorandum to the ministry's principal assistant secretary (Administration and Finance Division) Mohd Nazif Jamaludin in front of Parliament building in Pahang yesterday. Yap said the association was appealing for bauxite mining to be resumed as soon as the moratorium expired on April 15. "We hope the moratorium will not be extended as the bauxite mining operators have followed the standard operating procedure including matters related to pollution and cleanliness. "The Minerals Department had audited our mining locations and was satisfied," said Yap, who...
SA government urged to help localise aluminium value chain for automakers' sake
Mercedes-Benz SA wants the government to encourage local beneficiation of aluminium, which would allow motor companies to stop importing up to 50 per cent of metals used in their cars. CEO Arno van der Merwe said on Thursday his company was working with the industry and the government to identify raw materials that could be developed locally for inclusion in cars made in SA. Some firms claim local content of 70 per cent or more in their vehicles, but the industry average is just more than 40 per cent. Local content is defined as the value added in SA of the ex-factory cost of a vehicle including parts and manufacturing costs such as labour and energy. Mr van der Merwe said Mercedes-Benz SA imported all its aluminium, which accounted for 40 per cent-50 per cent of the construction of...
Ban on use of plastic in Bengaluru may spike demand for aluminium foils
Karnataka's newly-imposed ban on the wide-scale use of plastic is set to change the way the food industry works in the state. On March 11, the government notified the ban and said it comes into force with immediate effect. With this, the manufacture and use of plastic carry bags, cups, spoons and sheets are totally banned. Plastic packaging is allowed only when it is sealed at the factory level and for essential food products such as milk and dairy products. The decision has made businesses operating in the food industry, that is, look for alternative packaging material like aluminium foil or paper containers. Aluminium foil by virtue of being lightweight, semi-rigid, recyclable, and chemically inert to the packaged material, is favored by most restaurants and food outlets for packaging...
Chinese aluminium suppliers assessed dumping duties by Trinidad and Tobago
Trinidad and Tobago’s Trade and Industry Minister Paula Gopee-Scoon recently made a final determination that exporters from the People’s Republic of China have been dumping aluminium products in Trinidad and Tobago. As a result, Gopee-Scoon has ordered the Comptroller of Customs and Excise to impose anti-dumping duties on Chinese goods. According to an order dated February 21 and signed by the minister (and reported upon for the first time on Tuesday), Chinese exporters will be assessed duties of six per cent for aluminium bars, rods and profiles, and nine per cent for aluminium tubes and pipes. The duties are effective for five years beginning February 21. “Imports of aluminium extrusions originating in the People’s Republic of China were sold at a dumped price and have caused material...
