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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Alba holds AGM for 2015; approves cash dividends
Aluminium Bahrain B.S.C. (Alba), one of the world’s leading aluminium producers, held its Annual General Meeting (AGM) on March 16, 2016 at Al Dana Hall, Aluminium Bahrain, Askar, during which approval was given to the distribution of cash dividends related to the fiscal year 2015. The total dividend for the fiscal year 2015 amounted BD 15.5 million (US$ 41.3 million), equivalent to 11 per cent of the nominal value of the company’s shares - which is 11 fils per share, of which 5.5 fils (interim dividend) has already been distributed to the shareholders in September 2015. The final dividend for 2015, equivalent to BD 7.8 million (US$ 20.6 million), will be payable from April 3, 2016 to Alba's shareholders of record as of March 16, 2016. In addition, audited financial statements for the...
Altech Chemicals confirms financial robustness of HPA project
Altech Chemicals Ltd has revealed results of an update to its Bankable Feasibility Study (BFS) for the development of a 4,000tpa high purity alumina (HPA) processing plant at Johor, Malaysia. Key outcomes of the updated BFS include: • Increased estimated pre-tax NPV9 of US$358 million (previously US$326 million). • Higher Internal Rate of Return (IRR) of 33 per cent (previously 30%). • Capex US$78.7 million (was US$76.9 million). • Long-term sale price forecast unchanged at US$23,000/tonne for 99.99 per cent (4N) product. • Cost of goods sold slightly higher at US$9,074/tonne. • EBITDA of US$55.7 million per annum at full production. Iggy Tan, managing director, commented: “This updated BFS confirms the financial and technical robustness of the company’s HPA project, as was identified in...
High Purity Alumina market will be worth $5.09 bln by 2020
According to a recently published market research report, the global high purity alumina (HPA) market is projected to reach USD 5.09 Billion by 2020, at a CAGR of 20.1 per cent from 2015 to 2020. The increasing applicability of high purity alumina among varied end-user applications, such as LEDs, semiconductors, phosphor, and sapphire, among others is expected to drive the market for high purity alumina during the forecast period. The high purity alumina market can be segmented by purity level (4N, 5N, 6N), by application (Light Emitting Diode, Semiconductor, Phosphor, Sapphire, Others), and by region (Asia Pacific, North America, Europe, Rest of the World). Among all types of purity levels, the 4N segment led the global high purity alumina (HPA) in 2014, and accounted for the maximum...
Jean-Sébastien Jacques to succeed Sam Walsh as Rio Tinto CEO
Rio Tinto chief executive Sam Walsh will retire from the business on 1 July 2016 and will be succeeded by Copper & Coal chief executive Jean-Sébastien Jacques. To ensure a smooth transition, Jean-Sébastien, will join the board and become deputy chief executive with immediate effect. During more than three years on Rio Tinto’s executive committee, Jean-Sébastien has brought greater focus to the copper and the coal businesses. He has delivered a step-change in both safety and cash performance while significantly reducing costs. Prior to joining Rio Tinto, Jean-Sébastien worked for more than 15 years across Europe, Southeast Asia, India and the United States in a wide range of operational and functional positions in the aluminium, bauxite and steel industries. He served as group strategy...
Moratorium cost bauxite miners RM800m; stockpiles clearing gains momentum
The bauxite mining moratorium that started in Pahang near Kuantan Port area on January 15 has had a rather serious effect on the operators' balancesheets. The Pahang Mineral Operators Association (PPMNP) claims, they have have suffered a loss of RM800 million since the government imposed the moratorium. The impact of the bauxite moratorium has been expanisve enough to cover sectors beyond mining. PPMNP vice-president Yap Soon Huat claimed that the moratorium had caused the industry players including the services sector, transportation operators, restaurants and workshops missing on the economic spillover of about RM2 billion per month. “PPMNP wants to emphasise that this moratorium has not only led to the drop in state revenue and corporate taxes from mining companies to the federal...
GIFA, METEC, THERMPROCESS and NEWCAST to return in Düsseldorf on June 25-29, 2019
The dates for the mega trade fair quartet- GIFA, METEC, THERMPROCESS and NEWCAST have been announced. The event combo, the biggest in the metallurgy and automation space covering aluminium industry, will be held at the same four-year interval in Germany's Düsseldorf from June 25-29 in 2019. Requests from industrial exhibitors worldwide have already started pouring in numbers. Messe Düsseldorf Director Joachim Schäfer said: “For some time now, switching to a three-year interval has appeared to us to be necessary, because the innovation cycles in the foundry technology and metallurgy sectors are shortening too. It has proved to be the case that a shortening of the interval would put too much pressure on the corporate exhibitors. Since Messe Düsseldorf always acts in line with its customers’...
GoI to auction 42 blocks in Phase II including one bauxite in Maharashtra
The Government of India will be auctioning a total of forty three blocks in the second phase of mineral auctions during 2016-17. These blocks have been identified by seven state governments for auction under the Mines & Minerals Development & Regulation (Amendment) Act, 2015. The forty two blocks are spread across Chhattisgarh, Gujarat, Maharashtra - four blocks (one bauxite, iron ore, limestone, tungsten each), Odisha, Karnataka, Jharkhand, and Rajasthan. This includes one bauxite mining block out of four identified in Maharashtra. Speaking in Lok Sabha on Monday, union steel & mines minister Narendra Singh Tomar also said that in April-May 2016, twenty two mineral blocks will be auctioned under phase one, in which eight states have notified forty three major mineral blocks for auctions....
Alcoa’s future Value-Add Company to be named “Arconic”
Lightweight metals leader Alcoa has unveiled the name, logo and tagline of its future Value-Add company: “Arconic. Innovation, Engineered.” The future Upstream company will operate under the Alcoa name. The company’s separation into two, independent, publicly-traded companies in the second half of 2016 remains on track. The “Arconic” brand represents the future Value-Add company’s iconic heritage and continued commitment to industry-shaping innovation: • The “A” echoes Arconic’s proud Alcoa heritage; • “Arc” represents the arc of progress and the continued pursuit of advancement for customers, employees, shareholders and communities; and • “-conic” speaks to the company’s history of creating iconic products and its constant focus on the next breakthrough innovation. The tagline,...
China unveils tougher measures targeting aluminium extrusion producers in Foshan
Foshan City in China’s Guangong Province, which is home to the country’s aluminium extrusion producers, will unveil stricter measures targeting air pollution of local aluminium extrusion producers, according to a recent industry report. Foshan of Environmental Protection Bureau submitted Program on Air Pollution Treatment Targeting Aluminum Extrusion Producers in Foshan 2016-2017 on March 19. The program will target all 157 aluminium extrusion producers in the city. Under the program, those producers that discharge more pollutants than required will be ordered to suspend production for correction. Newly built aluminium extrusion plants must use clean energy, and new facilities not powered by clean energy shall be forbidden.
Bahrain industry minister receives aluminium sector representatives
Minister of Industry, Commerce and Tourism Zayed R. Al Zayani met a number of representatives of the manufacturing sector in the aluminium industry. They reviewed the latest developments related to this vital sector and its future developmental aspirations, especially in light of the facilities offered by the government to promote economic and industrial activities in particular. The minister expressed pride in the Bahraini private sector's support and considered it as a major partner in the national economy's progress and growth, adding that the ministry exert efforts in cooperation with the related authorities in order to facilitate the establishment of local or global investment projects, which will serve the national economy's best interest. The minister underscored the importance of...
Vedanta's Aluminium & Power business in Jharsuguda observes 45th National Safety Week
Vedanta Limited, India’s only diversified natural resources company continues its effort to promote and inculcate safety consciousness among the plant personnel. The company observed the 45th National Safety week from 4th - 14th Mar’ 2016 at its Jharsuguda operations. The theme of this year was “Strengthen safety movement to achieve zero harm” and various activities were conducted from 26th February 2016. On 4th March 2016, a Safety Flag was hoisted and Safety Pledge was administered by Sr. Management and employees. Various contests such as the identification of best First Aiders through Cardio Pulmonary Resuscitation (CPR) competition, Best Safety conscious Operation and Maintenance employees through ‘Safety Buddy’ competition, Hazard identification skills through ‘Hunt the Hazard’...
Aluminium price rally unsustainable as China’s production likely to increase significantly
Since mid-January, aluminium prices have grown 7.8 per cent. Even though the recent recovery in prices of metals is largely a technically driven move and not in line with demand fundamentals, a part of the aluminium price performance is more fundamentally driven as the markets have gone through a more significant supply response. There was a similar supply-driven rebound in aluminium price in the Q3 2014. The price had rallied from $1,756/t at the end of May to $2,115 by September, gain of 20 per cent, boosting by capacity closures in the world ex-China. Nevertheless, this rally sputtered by the end of 2014 as the market was saturated with aluminium again due to inventory profit taking and capacity restarts. As it happened in 2014, the current rally’s sustainability is dependent on...
Closer look at LME aluminium prices reveals anomalies
A first glance at aluminium prices on the London Metal Exchange yields few surprises, yet a closer look often reveals anomalies caused by one market participant holding large amounts of metal. Sources at commodity trading houses, warehouses, producers, brokers and banks say recently one such company is U.S. bank JPMorgan. Others have done so in past. "There are no position limits (on aluminium contracts) as such on the LME, if you are financing physical material there are no limits," a metals analyst said. "The LME is a physical market, no rules have been broken." While allowed under LME rules, holding a large, sometimes dominant position can to an extent have an influence on prices in the short term for contracts that will soon reach maturity. The LME declined to name any dominant...
Two Brothers Racing introduces aluminium canister option for S1R Black Series
Two Brothers Racing introduces a new aluminium canister option for the wildly popular S1R Black Series exhaust that caters to a growing trend of budget-minded riders in 2016. Available in both slip-on and full system applications for most popular brand platforms the S1R Black Series is the latest and greatest creation from the masterminds at Two Bros. “We love the S1R for the sound and performance but we know not everyone is looking for a full carbon fiber race set-up,” states Mark Jacobs director of sales at Two Brothers Racing. “Our goal was simple, provide our customers options in price without giving up performance” he adds. The research and development department at Two Bros truly hit a home run on the new S1R Aluminum exhaust. This beautifully polished canister compliments any bike...
Power firms saving billions by swapping copper for aluminium
Manufacturers in the electricals segment are abandoning copper for its lighter and cheaper rival aluminium after a decade of technological innovation that is saving some companies hundreds of millions of dollars. Sapa, a supplier of aluminium components, said it has seen a pickup in demand. Developments in aluminium wiring that compensate for lower conductivity and less flexibility, new ways to stop corrosion and more efficient conductors, mean there is more scope to replace copper in power grid cables, auto wiring, air conditioning and refrigeration systems. Saudi Electricity Co. said it has already saved 2.4 billion riyals ($640.09 million) by shifting from copper to aluminium in its medium voltage distribution network. “We started more than a year ago and we plan to continue,” said...
ALUMINIUM 2016 grows with the lightweight construction megatrend
Excitement is building for the 11th edition of the ALUMINIUM trade fair and conference, to be held in Düsseldorf from September 29 till December 1. Eight months before the fair commences more than 700 exhibitors have registered for the world's largest branch event. So it looks like ALUMINIUM is well on its way to have another record year, like in 2014. The fair is also expected to grow in terms of area, too: Six halls (9 to 14) will be occupied by ALUMINIUM this year. Every two years ALUMINIUM shows off new, pioneering solutions for more efficiency in production and processing - ranging from raw materials to semi-finished products, right to finished products from the application industries, including machines, equipment, accessories and surface treatments. In 2016 the fair will be...
Constellium reports Full-Year and Q4 2015 financial results
Constellium N.V. has reported results for the full year and fourth quarter ended December 31, 2015. These results include the acquisition of Wise Metals, which closed on January 5, 2015. Key Highlights: • 2015 Shipments of 1.5 million metric tons, up 39 per cent from 1.1 million in 2014 • 2015 Revenue of €5.2 billion, up 41 per cent from €3.7 billion in 2014 • 2015 Adjusted EBITDA of €343 million, up 25 per cent from €275 million in 2014 • Improved year-end leverage to below 5x and liquidity to €733 million from the prior quarter, including €145 million from the revolving credit facility • 2015 Diluted EPS of (€5.27) reflecting substantial impairment charges • Expanding joint venture with UACJ to establish a leadership position in the growing North American Body-in-White market, reducing...
About 41% of Chinese aluminium smelters bullish over prices this week
About 41 per cent of the 34 Chinese aluminium smelters surveyed by SMM expect aluminium prices to rise this week. Those optimists see SHFE 1605 aluminium rising above RMB 11,500/mt and LME aluminium advancing above all moving averages, citing positive factors. First, China’s aluminium output fell 5.8 per cent MoM in February. Aluminium stocks in Shanghai, Wuxi and Guangdong fell last Thursday from a week ago, with the decline three weeks earlier than in the same period last year. Second, spot prices will keep rising as delivery of SHFE 1603 aluminium is nearing, which will push SHFE aluminium up as well. Third, alumina prices rose for four weeks in a row and those in east China have risen to RMB 2,000/mt. Alumina capacity cuts in China have amounted to 4.4 million mt/yr so far this year,...
