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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China Hongqiao, world’s largest aluminium producer, to expand capacity
China Hongqiao, the world’s largest producer of aluminium, aims to raise the annual capacity of the lightweight industrial metal by around 15 per cent this year if the market recovery continues. The Shandong-based firm aims to spend up to 15 billion yuan this year on expanding its output capacity of aluminium, alumina, bauxite and electricity, besides retrofitting its coal-fired power plants to meet future carbon emission requirements. Last year’s spending totalled 14 billion yuan. Its debt-funded rapid capacity expansion in an industry afflicted with over-capacity has been a concern for investors, but the firm insists its expansion is rational since its production costs are much lower than its rivals because it has its own power plants and in-house upstream materials production...
Sinosteel, IMIDRO sign MoU for aluminium projects
China-based Sinosteel Company has signed a memorandum of understanding (MoU) with Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) to implement alumina, aluminium and power house plans, said a report. The production plan capacity for Alumina Powder Company is 1.6 million tonnes, for aluminium ingot is 350,000 tonnes and for combined cycle power house plant is 1000 MW. Both companies have appointed an urgent work group to provide implementation steps of this MoU and aim at implementing the second phase of the plan with two-fold increase in capacity, said the report. The president of Sinosteel expressed his interest in boosting cooperation with Iran in post-sanction era. Referring to direct financing and investment of these three projects, Huang Tianwen...
Market for aluminium aerosol cans stable at high level in 2015
The production of aluminium aerosol cans worldwide remained stable at a high level in 2015. The member companies of AEROBAL (International Organisation of Aluminium Aerosol Container Manufacturers) reported total production of 5.4 billion aluminium cans and thus a repeat of the previous year’s record result. AEROBAL’s secretary general Gregor Spengler is very pleased with the result: “Repeating 2014’s record is a rather good achievement considering the very difficult conditions in 2015; with economic turmoil in China, Russia and some emerging countries, the enduring problems in Greece, Ukraine and above all the Middle East, the global uncertainty resulting from the development of the oil price, and some considerable fluctuations in exchange rates. It demonstrates the strong capabilities...
US urged to probe dramatic increase in imports of Chinese aluminium
The domestic aluminium industry in the US has demanded investigation into subsidies granted by Chinese administration to aluminium producers. This comes on the back of surge in imports of finished and semi-finished aluminium from China into the US. The demand was raised by Chicago-based Century Aluminium Company and the United Steelworkers union. The team of researchers who visited China during last year had stated that they had received clear evidence for allowance of billions of dollars in subsidies by the Chinese administration to some local aluminium companies. The companies were also found to have received low-interest loans. The slowdown in Chinese economy has led to less demand for aluminium produced in that country. The sharp drop in demand has led to oversupply of metals...
Constellium-UACJ JV eyeing North American Body-in-White market
Constellium N.V. has announced the signing of a Memorandum of Understanding (MoU) with its Japanese partner UACJ Corporation (UACJ) to expand their existing joint venture to produce automotive Body-in-White (BiW) sheet in the U.S. The final contract is subject to the board approval of each party. By joining forces, the joint venture will become a leading player in the North American BiW market, combining strengths in technology, know-how and customer relationships. Under the expanded joint venture, Constellium and UACJ contemplate a joint investment in two previously announced 100 kt finishing lines, which would be funded 51 per cent by Constellium and 49 per cent by Tri-Arrows Aluminium Holdings, a U.S. affiliate of UACJ. Location of the finishing lines is still to be decided. This...
LME Aluminium to underperform SHFE Aluminium this week
SHFE aluminium will gather more steam on positive market fundamentals in China, while LME aluminium will face short selling pressure, SMM expects. Capacity restarts and new capacity release are still limited in domestic aluminium market. Consumption is still in recovery. As such, aluminium stocks in China’s major markets to fall this week. This will allow SHFE aluminium to challenge resistance at 11,500 yuan per tonne. LME aluminium, on the other hand, will drop to $1,550-1,580 per tonne, with strong resistance at the 5-day and 10-day moving averages. Spot discounts in China will narrow to 0-40 yuan per tonne over SHFE front-month aluminium contract due to nearing delivery date of SHFE 1603 aluminium.
Weiqiao Aluminum to put online large alumina project in Indonesia soon
Shandong Weiqiao Aluminum & Electricity Co. is scheduled to put online its large-scale alumina joint venture project in Indonesia on March 18, said a recent industry report. According to the report, the project, a JV between Weiqiao Aluminum and Indonesia’s Harita on a 60:40 basis, has an annual capacity of 2 million tonnes. Product from the alumina project will be mainly for self-use and whether to sell to the market will depend on market conditions.
Bauxite Resources review their half-yearly operations for period ended Dec 31
Bauxite Resources Limited (BRL) in their Interim Financial Report for the half-year ended 31 December 2015 have updated stakeholders on the status of their ongoing bauxite mining operations, business direction envisioned for the next half of the financal year, and strategy being devised by the Board. During the period under review, the company continued to focus primarily on resolving the issues surrounding the Felicitas Deposit with its Joint Venture Partner Yankuang Resources Pty Ltd (Yankuang). On 21 October 2015, the company announced it had reached agreement to sell its interests in the Joint Venture to Yankuang. Formal documents were signed on 30 November 2015, with shareholder approval being received on 18 January 2016 and settlement occurring on the 21 January 2016. On termination...
Abarth reveals 124 spider with aluminium features
Abarth & C. S.p.A., the noted racing car and road car maker, has unveiled its new 124 spider racing car model. Developed with input from the Abarth Racing Team, the rear wheel drive roadster features a mechanical Limited-Slip differential as standard to secure drive and traction. Weighing just 1,060 kilograms, most if it concentrated between the axles and the engine for better handling, the 124 has a weight-to-power ratio of 6.2 kg/HP - the best in its category says Abarth. The spider is available with a six-speed manual or the automatic Sequenziale Sportivo gearbox with paddles behind the steering wheel. Stopping power comes from the Brembo braking system, with aluminium front callipers. On the inside, the controls are in tune with the car's sporty set-up with the position of the...
Australian civic authorities planning aluminium architectural upgrades for car parkings
The civic authorities in Australia are planning major facelift for their car parking facilities across important cities this fiscal. While there are some reports that indicate a dip in car ownership due to younger generations shunning cars in favour of car sharing, the recent ABS figures show car ownership remains high, with 12 million vehicles currently on Australia’s roads. With so many cars, the question turns to increasingly stretched parking facilities. The planned modernisation could include improvements in the facilities’s façade, or more practical changes to the car park’s internal layout. The resulting benefits are not just about delivering a better car park experience, but also providing safety benefits, such as improved driver orientation, wayfaring, or undertaking an audit of...
Alcoa expands its range of aluminium wheels for medium-duty commercial vehicles
Alcoa Wheel & Transportation Products has expanded its range of aluminium wheels for medium-duty commercial vehicles with products designed specifically for the Mercedes-Benz Sprinter, Ford Transit and General Motors 3500 and 4500 models. Unveiled at the recent Association for the Work Truck Industry’s Work Truck Show in Indianapolis, Alcoa said the expansion showcases its commitment to the medium-duty market. Each wheel in Alcoa’s M-Series collection provides the same benefits that the company’s forged aluminum wheels provide to heavy duty (Class 7 & 8) customers, the company said, but are customized to fit medium-duty class 2 through 6 applications. (Alcoa Wheel & Transportation Products photo) Medium-duty wheels are shown for (left-right) GM 3500/4500; Sprinter 2500; and Ford Transit,...
SAF-West wins Business of the Year Award
As part of the Greater Redding Chamber of Commerce’s annual “2016 Winter Gala: Honoring Local Legends & Leaders” held Friday night, February 26, 2016, the Chamber presented the 2015 Business of the Year award to Southern Aluminum Finishing (SAF). Jim McClatchey accepted the award on behalf of the company. The annual award recognizes a business distinguishable by their investment in Redding’s employment, development, and community involvement. In issuing the award, Redding Chamber of Commerce CEO and President, Jake Mangas acknowledged SAF’s 70 year history and the opening of their SAF-West branch in 2007 that has grown to more than 50 full time, manufacturing employees. Representatives from the City of Redding Mayor’s office, Shasta County Supervisors, the California State Assembly and...
Boguchansk smelter news from Rusal lifts Indian aluminium scrap, MCX aluminium
India major aluminium scrap commodities prices advanced on Wednesday in line with aluminium futures prices at Multi Commodity Exchange as the world's biggest aluminium producer Rusal said on Wednesday it planned to start its Boguchansk smelter in the first half of the year, but also said output growth in top producer China would be the lowest in five years. The major aluminium scrap commodities advanced on Scrap Register Price Index as on Wednesday. India's major scrap commodities like aluminium accessories scrap, aluminium sheet cutting and aluminium wire scrap traded down on Wednesday. The most active March aluminium contract on Multi Commodity Exchange settled slightly up by 0.75 per cent to INR 106.25 per kilogram on Wednesday from previous close of INR 105.75 per kilogram. The MXC...
Advisory Committee on Packaging publishes PRN guide
A guide explaining the operation of the UK packaging recovery note (PRN) system has been published by the Advisory Committee on Packaging (ACP). The guide is designed to provide comprehensive information for all interested parties on how the system for packaging waste recycling operates and what it is designed to achieve. The PRN system is the mechanism used by packaging producers in the UK to meet the requirements of the European Packaging and Packaging Waste Directive and the UK Producer Responsibility Regulations for Packaging. In practice, it requires packaging producers to provide a financial incentive to the packaging recycling industry to collect and reprocess enough material to meet government targets. According to the guide, the system ‘provides a “top up” subsidy over and above...
India Ratings and Research revises outlook for aluminium to negative in FY17
Weak demand, import pressure and declining prices are impacting the non-ferrous metals market, India Ratings and Research (Ind-Ra) said adding the outlook for such metals is negative for the next fiscal. Ind-Ra has revised the outlook on the non-ferrous metals sector to negative for 2016-17, from stable for 2015-16, it said in a statement. "The agency has also revised outlook on sector companies to Negative for FY 2016-17, from Stable in FY 2015-16. It expects the sustained deterioration in metal prices from current levels to be the key driver of possible rating downgrades," it added. Although industry players have been maximising free cash flows with cost control and a reduction in working capital cycles, weak demand growth, import pressure, low physical premiums and sub-optimal capacity...
ASI opens registration for inaugural AGM on April 26
The inaugural Annual General Meeting (AGM) of Aluminium Stewardship Initiativ (ASI) will be held on Tuesday April 26, 2016 at the Audi Forum, Ingolstadt, Germany. More than 80 people have now registered to attend the AGM. The event is open to industry, civil society and all interested organisations, where they can learn more about ASI's work to develop sustainability standards for the aluminium value chain, the broader landscape of voluntary standards, and meet ASI members and stakeholders. The day's agenda includes: • Formal AGM proceedings (ASI members only) • Keynote speakers from ISEAL Alliance and WWF on sustainability and voluntary standards • Updates on ASI's work to develop a certification program covering sustainability performance and chain of custody for aluminium • Audi...
Glencore's head aluminium trader Caplan set to leave
Glencore's head aluminium trader Andrew Caplan is due to leave at the end of the summer, the company said on Thursday, March 10. Caplan became head of the Swiss trading and mining group's aluminium division in 2013 after joining the group in 2007 from rival trading group Trafigura. Caplan has already handed over responsibility for Glencore's alumina and aluminium trading books ahead of his departure.
KAP smelter update: CEAC welcomes European Parliament’s resolution on Montenegro
The Central European Aluminium Company (CEAC), a Cyprus-based major shareholder and one of the largest creditors of Montenegro’s Kombinat Aluminijuma Podgorica (KAP), today has welcomed the European Parliament’s strong-worded resolution on Montenegro with reference to the European Commission’s 2015 Progress Report. The European Parliament resolution slams Ðukanovic’s government for lack of progress in strengthening the rule of law and governance and fighting corruption and organised crime. It says “corruption remains a serious concern, particularly in […] privatisation” and “reiterates the need to eliminate corruption on all levels since it undermines democratic principles and negatively affects social and economic development”. It has criticised the government’s lacklustre approach to...
