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
Vietnamese painter creates wonder with aluminium waste materials
Painter Nguyen Van Phuc in the Mekong Delta has developed techniques to make bas-reliefs on aluminium. He is reportedly the first to do it in Viet Nam. With a precise mind and skilled hands, the artist turns waste materials, such as empty aluminium beer or juice cans, into sophisticated works of art. "I happened upon an idea to make bas-reliefs on aluminium," Phuc recalls. He said he has since then created many paintings using water colours, oil paints and has made wooden sculptures, but, "these materials are too popular, so I decided to develop a new sculptural style and medium for me: aluminium reliefs". Phuc has chiselled hundreds of works, including the Don Ca Tai Tu (Southern Folk Music), which won second prize at the Can Tho Arts Fair in 2012. Also, Cho Noi Cai Rang (Cai Rang...
Metro Mining Ltd declares Gulf Alumina takeover offer unconditional
Metro Mining Ltd has extended and declared its off-market takeover offer for all of the shares in Gulf Alumina Limited unconditional and free from all defeating conditions. Metro will now become Gulf’s largest shareholder, with a relevant interest of 22.1 per cent of the issued capital of Gulf as at the close of business on 8 March 2016. By declaring its offer unconditional, all Gulf shareholders that accept the offer will receive Metro shares. Metro shareholder benefits include: • Proven board and management team with track record of project development; • Rapid project development progress; • Native title and land access agreed with traditional owners; • Strong balance sheet with net cash of $5.3 million at the end of December 2015; and • ASX listing and trading liquidity. Metro also...
CMDC to offer licence for mining bauxite in Barima block
The Chhattisgarh Mineral Development Corporation (CMDC) would soon be offering license for mining and marketing of bauxite mineral from its Barima block in Sitapur district of Surguja district. Open-cast mechanized mining method with drilling and blasting is proposed for the project, officials stated. Notably, Chhattisgarh is among 19 States in the country where the Geological Survey of India (GSI) has also proposed to take up aerogeophysical survey to explore new mineral blocks. In the first phase, it has been proposed that, reconnaissance aerogeophysical survey will be completed with magnetometer and gravity sensors and in the second phase, high resolution airborne survey will be carried out over potential mineral zones identified from the reconnaissance survey. A total of 8.13 lakh...
Gov. Nixon allocating funding for layoffs at Noranda Aluminum
Gov. Jay Nixon announced on Tuesday, March 8 that $1.7 million in resources will be allocated to assist the nearly 850 workers impacted by layoffs at the Noranda Aluminum in New Madrid. These resources, made available through the Missouri Department of Economic Development and other partner agencies, will help impacted workers offset costs of utilities, housing, job placement training and tuition. “These layoffs have affected hundreds of Missouri families in the region, and we are committed to doing everything we can to help these workers transition and move forward,” Gov. Jay Nixon said. “The resources we’re announcing today will not only help these hardworking Missourians make ends meet, they will also help stabilize the local economy.” The Missouri Department of Economic Development...
MCX aluminium outlook: Aluminium futures contract rises to INR 111.3 in Feb
Aluminium price has recovered strongly from its six-year low. The aluminium spot price on the London Metal Exchange (LME) fell to a six-year low of $1,423 per tonne in November 2015. The metal price has surged about 13 per cent from this low to the current levels of $1,604 per tonne. The strong economic data from the US has brought about a change in sentiment. Also, increased hopes for further stimulus announcements from China, the world’s largest consumer of this metal, is also providing support to the recent rally in aluminium price. On the domestic front, the aluminium futures contract traded on the Multi Commodity Exchange (MCX) has also risen sharply from its multi-year low of INR 93 per kg recorded in October 2015. The contract rose to a high of INR 111.3 in February and has come...
Aluminium extrusion becomes biggest drag on China
China’s aluminium semis exports fell both on year-on-year and month-on-month basis in January, with extrusion being the biggest drag. Rising SHFE/LME aluminium price ratio and production interruptions around holiday period were to blame for the decline, SMM said. China exported 330,000 tonnes of aluminium semis in January 2016, down 11.26 per cent from December 2015 and 13.16 per cent from a year ago, according to China Customs. Of them, exports of extrusion plunged 18.01 per cent, those of plate/sheet and strip fell 10.37 per cent, those of foil dropped 4.65 per cent, and those of pipe/tube decreased 2.13 per cent, all on a month-on-month basis.
Constellium to report Q4 and full year 2015 results March 15, 2016
Constellium N.V. has notified that the company will announce its fourth quarter and full year 2015 financial results on March 15, 2016. A conference call and webcast to present the results will take place at 11:00 a.m. EDT on the same day. The conference call will be hosted by Pierre Vareille, Chief Executive Officer, and Didier Fontaine, Chief Financial Officer. Details of the conference call, webcast and accompanying presentation will be available on the Constellium Investor Relations page. The webcast can be accessed live at: https://www.webcaster4.com/Webcast/Page/999/13484 To participate by telephone, investors can dial the following number and ask to be connected to the Constellium Q4 earnings call: USA: 1 866 376 8056 France: 0 805 102 319 Germany: 0 800 589 5393 Switzerland: 0 800...
India aluminium scrap prices remain stable; MCX aluminium inches up
India major aluminium scrap commodities prices remained flat on Monday, while aluminium futures prices at Multi Commodity Exchange settled slightly higher driven by expectations for demand recovery in Chinese aluminum market. The major aluminium scrap commodities dropped on Scrap Register Price Index as on Monday. India's major scrap commodities like aluminium accessories scrap, aluminium ingots, aluminium rod company, aluminium rod local, aluminium sheet cutting, aluminium utensil scrap and aluminium wire scrap were remained flat on Monday. The most active March aluminium contract on Multi Commodity Exchange settled slightly up by 0.75 per cent to INR 107.40 per kilogram on Monday from previous close of INR 106.60 per kilogram. The MXC aluminium prices touched an intra-day high of INR...
First Bauxite Corp closes second tranche $11m non-brokered private placement
First Bauxite Corporation has announced the closing of the second tranche of a non-brokered private placement to Resource Capital Fund VI L.P. of a US$11 million principal amount secured convertible note bearing 8% interest and maturing August 1, 2017. The principal amount of the Note will be convertible at the option of RCF into common shares of the company at CAD$0.05698 per share for a period of one year from the date of issuance and CAD$0.10 per share thereafter, while interest outstanding on the converted amount may, at RCF's election, be settled by the issue of company shares at the market price. The company may prepay the principal amount of the Note in shares valued at the Conversion Price if the volume weighted average trading price of the company's shares exceeds 200 per cent of...
China alumina imports rise 31.76% YoY in Jan; no plans to restart idled capacity
China imported 507,500 mt of alumina in January 2016, up 31.76 per cent year-on-year, but down 6.72 per cent month-on-month, revealed data released by the China Customs. Alumina prices overseas were depressed during December 2015 and January 2016, boosting Chinese buyers’ interest in imported alumina. Chinese alumina producers cut production during November and December 2015, also turning some buyers to imported alumina. Alumina capacity cuts in China have amounted to 4.4 million-tpy so far this year, including capacity being cut, SMM statistics showed. Idled alumina capacity in China is unlikely to come back online on a large scale, despite recent price rise, SMM expects; the reason being that current prices are not attractive enough. Alumina producers in southwest China are still...
China’s aluminium exports take a dip amid trade friction
China’s aluminium shipments declined in February, reflecting weaker overseas demand, increased trade frictions and slowing domestic production. Exports of unwrought aluminium and products fell 26 per cent to 280,000 metric tons from the previous month, the smallest in two years, customs data show. The country’s total exports plunged 25.4 per cent in dollar terms from a year earlier, the most since May 2009. A slowdown in global trade is making it harder for the country’s leaders to keep growth in the targeted 6.5 per cent to 7 per cent range. China, the largest producer of aluminium, has boosted exports as the weakest growth in a generation slowed demand at home. The surge in shipments has pushed down world prices and spawned trade tensions from the US to Europe and India. “Economies are...
RUSAL full-year 2015 result: Total revenue declines while profit surges 126% YoY
UC RUSAL, a leading global aluminium producer, has announced its results for the year ended 31 December 2015. Total revenue decreased by USD677 million or by 7.2 per cent to USD8,680 million in 2015 compared to USD9,357 million in 2014. The decrease in total revenue was primarily due to the lower sales of primary aluminium and alloys, which accounted for 83.9 per cent and 83.6 per cent of UC RUSAL’s revenue for the years 2015 and 2014. Revenue from sales of primary aluminium and alloys decreased by USD544 million, or by 7.0 per cent, to USD7,279 million in 2015, as compared to USD7,823 million in 2014, primarily due to 9.8 per cent decrease in the weighted-average realized aluminium price per tonne driven by a decrease in the LME aluminium price, as well as a decrease in premiums above...
Tesla Model S electric car packs in 410 lbs aluminium
The Tesla Model S, the world’s most-wanted electric car, which has recorded a whopping 100,000 units sale as of December 2015, has been lauded by the critics for its impressive safety rating, range, and design. However, it is also worth considering that it is the incredible raw materials that go into the Tesla Model S that help to make all of these things possible. The Tesla Model S body and chassis are built almost entirely from aluminium, which comes from bauxite ore. Aluminium is lightweight, which helps to maximize the range of the battery beyond that of other EVs. The total amount of aluminium used in the car is 410 lbs (190 kg). The Tesla battery pack weighs 1,200 lbs (540 kg), which is equal to about 26% of the car’s total weight. This puts the car’s center of gravity a mere 44.5...
Alba welcomes high level Indonesian delegation
Aluminium Bahrain B.S.C. (Alba), the Bahrain-based leading international aluminium smelter, today, March 07, 2016 welcomed a high level delegation from the Indonesian parliament, headed by Member of the House of Representatives of the Republic of Indonesia, Asep Maoshul. The meeting was held at the Alba’s Al Dana Hall where the delegation was welcomed by Alba’s Chief Financial Officer, Ali Al Baqali, Chief Marketing Officer, Khalid Latif and Acting Chief Operations Officer, Amin Sultan. Speaking about this visit, Alba’s Chief Financial Officer, Ali Al Baqali said: “We are pleased to receive the Indonesian delegation and discuss various matters related to industry and commerce between the two countries. As one of the key pillars of Bahrain’s economy, it was a privilege to share Alba’s...
Aluminium smelters to benefit from SHFE delivery warehouse capacity expansion
The Shanghai Futures Exchange (SHFE) recently approved 12 warehouses from eight companies for aluminium delivery. The latest move by the SHFE will help facilitate hedging business for local aluminium smelters and processors, as well as reduce aluminium delivery costs, SMM aluminium analyst Liu Xiaolei said. Every coin has two sides, though. Some aluminium smelters expressed concerns that production costs for deliverable aluminium will be 10-20 yuan per tonne higher than those for non-deliverable aluminium, due to high requirement on deliverable aluminium’s packaging, quality, etc. Smelters are more concerned with whether the price spread between deliverable and non-deliverable aluminium could offset additional production costs for the former. Market players see a high possibility that the...
About 33% of Chinese aluminum smelters bullish over prices this week
About 33 per cent of the 33 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 breaking through USD 1,600/mt, citing positive factors. First, the PBOC’s RRR cuts stimulated home sales in first-tier cities, and home prices in second-tier cities followed up. This will brighten demand outlook for aluminium windows and doors, etc. Second, alumina prices have risen from RMB 1,661/mt at the end of last year to current RMB 1,855/mt and on track for more gains, adding to aluminium costs. Third, aluminium stocks in China’s three major markets were flat with a week ago as consumption recovers. Fourth, technical side is positive for SHFE aluminium. Another 56 per cent see SHFE 1605...
Toyota opens aluminium engine plant in West Java, Indonesia
Toyota Motor Manufacturing Indonesia, a local unit of the Japanese automotive giant, has inaugurated its fifth factory in the country on Monday in Karawang International Industrial City, an industrial area in West Java. The opening marks a significant milestone for Indonesia after the country took control of its domestic aluminium supply three years ago, as part of its aspiration to to add more value to its natural resources. The factory will produce aluminium-block engines, known as R-NR, for domestic and Asian markets, Koei Saga, senior managing director at parent company Toyota Motor Manufacture, said. The company chose Indonesia as its third country in which to establish engine manufacturing, after Japan and China, as the country is the world's largest producer and consumer of...
Rolls-Royce plans aluminium space frame platform for 2018
Following in the footsteps of parent company BMW, Rolls-Royce announced the development of a future vehicle platform composed of a lightweight aluminium space-frame. Like the new BMW 7-Series, which uses a new chassis almost entirely composed of aluminium and lightweight carbon composite material, the new Rolls-Royce chassis will put particular emphasis on reducing the amount of mass lugged around by the big V-12 engines. Rolls will use this architecture to underpin their entire lineup, beginning in 2018. According to noted auto experts, the new chassis architecture is destined to find its way under the bodywork of all future Rolls-Royce models, including the forthcoming Cullinan SUV. This means the Phantom, the Ghost, the Wraith, and the Dawn should all see a substantial drop in weight...
