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...
Grow with
AL Circle
European cars to use more aluminium downstream products to meet CO2 targets
The amount of light, recyclable aluminium in European cars will rise to 180 kg on average by 2020 as automakers look to cut harmful carbon emissions, a senior metals industry official said. Global targets to curb greenhouse gases are prompting a shift to aluminium away from other, heavier metals such as steel. Aluminium use is expected to rise to 180 kg per car on average from 140 kg in 2012, with long-term growth coming from aluminium rolling sheet and aluminium extrusion components, said Gerd Gotz, director general of industry body European Aluminium, citing a new study confirming forecasts it made in 2012. "This will be the growth engine of the aluminium downstream industry,” Gotz told Reuters at an aluminium conference in Cape Town. Under 2015 European Commission mandatory targets,...
Over $3 bln aluminium alloy cable base to settle in Guangxi
China’s Guangxi province will begin building 20 billion yuan ($3.1 billion) worth of rare earth high-Fe aluminium alloy cable new materials industry base in H1 2016, said a recent industry report. Hebei’s Joy Sense Cable Co., Guangxi’s Zhongma Qinzhou Industry Park Management Commission, and Guangxi Investment Group signed a cooperation agreement on March 6 over joint construction of the industry base in Zhongma Qinzhou Industry Park, Guangxi. Under the agreement, investment for first phase of the project will be about 5 billion yuan, which promises to yield about 20 billion yuan in output value, the report noted. Replacing copper with aluminium in power cable industry will become a trend in the future, which will present great market potential.
“Castings Zone” of Aluminium China to facilitate purchasing and processing
Nowadays, “new economy” is always a hot topic of the world. On an executive meeting of the State Council, Premier Li Keqiang re-explained the concept of “new economy”, and highlighted “new energy auto” as a landmark of “new economy”. The meeting also determined the measures of continuing to support new energy auto industry and to promote green development based on structural optimization. Lightweight automobiles driving production of aluminium alloy castings As the development of “new energy auto” is increasingly highlighted, a faster lightweight and energy-conservation development of automobiles has been seen in the world. In recent years, castings of magnesium and aluminium alloys, as the most important factor of lightweight development of automobiles, have achieved rapid development...
Govt of India colour-codes industries: aluminium extraction from scrap- orange, aluminium utensils- green
Government of India has come up with a list of industries that would now be classified as red, orange or green, and the different rules that they would be subjected to. This decision pertaining to a new colour-coded categorisation of industries based on a particular industry's pollution potential was made in 2015. It took the government a year to finalise the list of industries. A new category, white, has been added to include the industries that are “practically non-polluting”. These industries, like air cooler or air conditioning units, won’t need a green clearance enabling easier financing. The classification is for entire industrial sectors and not for individual units. Cement industry, petrochemicals, fertilizers, and paints, for example, have been put in the red category. Orange...
Fresh selling seen in aluminium, open interest up by 13.62%
Aluminium on MCX settled down -0.68 per cent at 101.55 tracking weakness in LME three-month aluminium fell 0.3 per cent to $1,515 in cautious trade ahead of the outcome of a Federal Reserve policy meeting, which is expected to leave interest rates on hold but signal how quickly the bank may tighten this year. According to sources now the market for aluminium was balanced, there was a risk more capacity coming on line would snuff out the recovery. LME aluminium prices should remain at a level which keeps capacity idled - in our view around $1,400 a tonne, for the foreseeable future. China’s primary aluminium output fell significantly during the first two months of this year, data from the National Bureau of Statistics (NBS) showed. Output dropped 7.7 per cent year-on-year to 4.55 million...
China's aluminium firm Chalco back in profit, plans offshore bonds
Aluminum Corporation of China Limited (Chalco) moved back into profit in 2015 after a record loss in the previous year after the company cut costs, closed loss-making facilities and sold assets. The company's board also gave approval for the issue of debt instruments, including up to $1 billion worth of offshore bonds, it said in a filing on the Shanghai stock exchange on Thursday. The planned issues are still subject to shareholder approval. In 2015, Chalco posted a net profit of 206.3 million yuan ($31.84 million) versus a record net loss of 16.2 billion yuan in the previous year, according to the filing. Chalco, a state-controlled leading producer of primary aluminium and raw material alumina in the country, returned to the black despite a fall in domestic aluminium prices. The company...
JPMorgan rattles traders with LME aluminium stockpile
JPMorgan Chase is holding more than half of the aluminium on the London Metal Exchange, a multibillion-dollar position that has rattled rival traders and raised questions in London’s tight-knit metal market about its influence on prices. The bank’s $2bn-plus physical stockpile of aluminium, which could cover 40 years of Coca-Cola’s current UK drinks can output, has been blamed by many traders for pushing up the price of near-term contracts that are about to expire, even though the industry is in its seventh year of a major supply glut. Big aluminium buyers, say the concentrated holding of at least 1.4m tonnes of aluminium stocks has distorted the supply outlook and made it more difficult to use the LME to protect against volatile prices. “If you looked at the LME without knowing anything...
Altech Chemicals Ltd appoints EPC contractor for high purity alumina project
Altech Chemicals Ltd has appointed M+W Group as its engineering, procurement and construction (EPC) contractor for its high purity alumina (HPA) project. The appointment of M+W Group as EPC contractor by Altech marks the formal commencement of the final detailed engineering design phase of the project. Iggy Tan, managing director for Altech, commented: “M+W Group brings vast construction experience and knowledge to the project. "With a strong presence in Asia, and specifically experience at project construction in Malaysia, the use of its local Singapore and Malaysian offices for construction with detailed design in Germany is a perfect combination for us.” Altech 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...
Gartner to supply aluminium facades for the largest building project in Switzerland
New Major Contracts from Los Angeles to Frankfurt - Europe’s highest skyscraper will be clad with an aluminium-glass façade made in Gundelfingen, Bavaria. Josef Gartner GmbH was awarded the contract for the building shell of 460m high Lakhta Centre in St. Petersburg. Gartner will also manufacture the façades for The Circle at Zurich airport, the largest building project in Switzerland. The façade cladding for both major contracts will cover an area of over 165,000 sqm or about 23 football fields. Lakhta Center in St. Petersburg, Russia has been designed as a mixed use complex. The 460.7m high tower will be twisting upwards like a winding needle. Its complex aluminium and glass façade is twisted by 0.8 degrees. The glass will be cold-formed as this presents a cost-efficient method which...
Aluminium aerosol can market in UK witnessing unprecedented growth in 2015
The manufacturers and suppliers of aluminium aerosol cans who are operating in the UK have been witnessing an unparalleled growth in 2015. The year till now has practically pushed some aluminium aerosol can suppliers to their capacity limit, revealed a recently published market research report on the British aerosol packaging market. The buoyancy in demand for aerosol cans made of aluminium is largely attributed to the brand owners who provided the necessary market impulses with innovations and strategic promotions. Individual branded companies reportedly suffered from a shortening of aerosol cans. This for example had a negative impact on the business of consumer goods giant Unilever. The first two months of the current business year, however, were still characterised by brisk demand,...
Chalco eyeing aluminium downstream expansions
Aluminum Corporation of China (Chalco) will focus on aluminium applications in transportation and construction sectors, said its chairman Ge Honglin, who is painting a rosy picture of aluminium use in China. Ge was quoted by Wenhua Finance as saying aluminium applications in China is far from the peak period. Chalco has signed cooperation agreement with several automakers over R&D in automotive aluminium alloy new materials. The company hopes to realize mass supply of aluminium parts and components for car use in coming 2-3 years. Chalco will step up R&D in aluminium sidings and scaffold this year and actively develop regional markets, a source from the company said.
U.S. manufacturers’ coalition calls on Dept. of Commerce to fairly assess China’s economic status
A group of leading U.S. manufacturing associations today announced the formation of a new coalition, Manufacturers for Trade Enforcement, to oppose China’s designation as a market economy at the end of 2016. China has claimed that it should be automatically accorded treatment as if it were a market economy after the 15th anniversary of its accession to the World Trade Organization (WTO) in December 2016. U.S. law requires that the Department of Commerce make a market economy status (MES) determination based on established criteria, which many experts agree that China has not met. “Our industries can compete against any other market-oriented competitors, but we cannot compete against the Chinese government,” said Heidi Brock, President & CEO of the Aluminum Association. “The Chinese...
Bonnell Aluminum to invest $18 mln in Niles facility
Bonnell Aluminum plans to invest approximately $18 million in a new aluminium extrusion line at its facility in Niles over the next year, according to a statement released today. The Newnan, Ga.-based manufacturer of soft and medium-strength alloy aluminium extrusions for the construction, automotive, machinery and other markets expects to begin production on the new line in the second quarter of 2017. Bonnell’s new line will include a 16-million-pound capacity extrusion press, supporting equipment and additional floor space for future expansions, according to the statement. The company, a subsidiary of Richmond, VA.-based Tredegar Corp., cites “continued growing demand from our customers,” as a driver for the expansion in Niles, said Brook Hamilton, president and general manager for...
Constellium launches Notes offering
Constellium N.V.has announced that the company intends to offer, subject to market and other conditions, approximately $400 million of senior secured notes due 2021 consisting of U.S. dollar denominated senior secured notes. The Notes will be guaranteed on a senior secured basis by certain of the company’s subsidiaries and secured by certain assets of the company and certain of the company’s subsidiaries. The company intends to use the proceeds from the Offering for general corporate purposes, which may include investments in Wise Metals Intermediate Holdings LLC and its subsidiaries (“Wise Metals”) and the company’s joint venture with UACJ Corporation, capital expenditures, repayment of debt, working capital investments, research and development efforts, or future acquisitions. Upon...
Wisconsin Aluminum Foundry exhibiting at CastExpo16 in Minneapolis, MN from April 16-19
Wisconsin Aluminum Foundry announced that they will be exhibiting at the CastExpo16 to be held in Minneapolis, MN April 16-19, 2016. Key Highlights of this year's Cast Expo: • 450+ Exhibitors showcasing the latest equipment, technology and resources. • Access to the whole supply chain: suppliers, metalcasters and casting buyers. • 4 days of professional development, for all job responsibilities, from executives to plant floor. • Metalcasting classes. • The latest technical research, practical roundtable discussions, and panels from industry experts. • Networking activities. • Real-world solutions to apply back at the job. Established in 1909, Wisconsin Aluminum Foundry has consistently provided the finest quality aluminum and copper based alloy castings for a wide variety of industries....
Qatalum: National representation at TMS2016
Qatalum received several accolades and fitting recognition at Nashville this year. In particular was the baking furnace achievement and Qatari representation amongst the engineering peer group on issues related to the aluminium reduction process. Visited annually by more than 4,300 scientists and engineers, the TMS Annual Meeting & Exhibition is a top global showcase for the latest products and services in minerals, metals, and materials. This year’s TMS2016, also known as The Minerals, Metals & Materials Society Annual Meeting & Exhibition, took place from the 14 to18 February in Nashville, Tennessee. The event brought together business leaders, engineers, scientists and other professionals in the materials field for an outstanding exchange of technical knowledge leading to solutions in...
Indonesia hopes four new smelters complete in 2016
Indonesia hopes four new smelters will be completed in 2016, a mining ministry official said on Wednesday, as low commodity prices continue to create financial problems for the mining industry and shrink government returns. Indonesia banned metal ore shipments in early 2014 to encourage firms to build smelters and shift exports from raw materials to higher-value finished metals. But the ban cost the country, a major supplier of bauxite, billions of dollars in lost revenue. Dozens of smelter projects have been delayed as a result of the current downturn in commodity prices. "In 2016 we hope four additional smelters will be operational," Coal and Minerals Director General Bambang Gatot told reporters. They will process nickel, alumina and lead. The latest figure is around half of an earlier...
Revolution buys property for aluminium plant
The company that plans to build an aluminium plant in Pineville that could employ more than 1,000 people has bought property for the project. Revolution Aluminum Propco LLC secured the property that formerly housed Pineville's International Paper mill. The startup plans to build its own mill on the property. Several other partner companies that will support the mill's operations are also expected to locate to the complex, which has been named Innovation Park. Together, the companies are expected to spend more than $1.5 billion and employ more than 1,000 people. "The hard work over the last year to make this day happen will pay off in huge opportunities for all of Central Louisiana," said Pineville Mayor Clarence Fields. "Revolution Aluminum and the other tenants of the park have the...
