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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Indonesia Asahan Aluminium named holding company for mining SOEs
The Ministry of State-Owned Enterprises has appointed PT Indonesia Asahan Aluminium (Inalum) as the holding company for state mining companies. This makes Inalum be in charge of PT Bukit Asam (Persero) Tbk (PTBA), PT Timah (Persero) Tbk (TINS), and PT Aneka Tambang (Persero) Tbk (ANTM). Fajar Harry Sampurno, the SOE Ministry's deputy for Mining, Strategic Industry and Media Department, said Inalum was appointed because it is wholly owned by the government. This way, the state will have full control over its subsidiaries. Despite the full-control status of the government, Harry ensured that the subsidiaries with a public company status will their status. "We promise that we will not interfere with investors," he said yesterday. The discourse to form a mining holding emerged when the...
EGA achieves international accreditation of its metallurgical laboratories
The commitment of Emirates Global Aluminium (“EGA”) to continual improvement and standardisation has led to the accreditation of the organisation’s Laboratories to ISO/IEC 17025:2005 (General requirements for the competence of testing and calibration laboratories), in the field of Metallurgical Testing. The certificates were presented to Abdulla Kalban (MD & CEO: EGA) by the Director of Dubai Accreditation Centre, Amina Ahmed Mohammed, on 18 February 2016, in the presence of EGA senior management and core implementation team members. Commenting on the accreditation, Kalban said “Currently, the standardisation of best practices is one of the key elements that bring measurable value to EGA’s operations. It reflects EGA as a strong brand by delivering consistency in quality of the products...
About 64% of Chinese aluminium smelters see prices stabilizing this week
About 64% of the 33 Chinese aluminium smelters surveyed by SMM expect aluminium prices to stabilize this week. Those neutral smelters see SHFE 1605 aluminium at RMB 11,250-11,380/mt and LME aluminium at USD 1,550-1,575/mt. Aluminium consumption in east China is strong, but demand recovery is tepid in other markets. The divergence will keep market players cautious. Caution will also prevail before the upcoming NPC & CPPCC sessions. KDJ indicates that SHFE aluminium will have little upward momentum, while support at the 5-day moving average is strong. Another 27 per cent are bullish that SHFE 1605 aluminium will climb to RMB 11,400-11,500/mt and that LME aluminium will rise above USD 1,580/mt, citing positive factors: 1. Trading in domestic spot market has become active, allowing spot...
Chery Automobile lays cornerstone for its aluminum-body electric vehicle project
Chery Automobile Co. has broken ground on its ambitious aluminum alloy-body electric passenger vehicle project on February 23. It is reported that the 1.56 billion yuan project will be built in two phases. The first phase will enter operations in 2016 with an initial annual capacity of 10,000 vehicles. Construction for the second phase will be completed by the end of 2017 when annual capacity will reach 60,000 vehicles.
German aluminium packaging market: Over 2 bn beverage can deliveries in 2015
In a recently published EUWID quarterly report on the German aluminium market, it has been observed that the the omens for suppliers of aluminium packaging are positive all round at the beginning of 2016. EUWID respondents were predicting volume growth in all segments which might vary depending on the delivery sectors but was overall indicative of at least constant operating rates and sound order levels. Producers of beverage cans, who broke a new annual delivery record in Germany in 2015, are particularly optimistic about the months ahead. While the market for aluminium aerosol cans continues to slow at an overall high level, suppliers of aluminium tubes speak of stable operating rates coupled with an in large parts stagnating general market. All packaging producers share the view that...
India govt raises Customs duty on aluminium products from 7.5% to 10%
The Government of India yesterday proposed to raise the Basic Customs Duty (BCD) on aluminium products by 2.5 per cent, a move that will help curb influx of cheap aluminium imports. Basic Customs Duty is being increased for aluminium products from 7.5 per cent to 10 per cent, Finance Minister Arun Jaitley said while delivering his Budget speech for 2016-17 in the Lok Sabha. Last week, the Parliamentary Committee on Public Enterprises had recommended the government to raise import duty on aluminium and raised "serious concerns" on "adverse impact" of cheaper imports on the profitability of state-owned Nalco. It said that out of total aluminium consumption in India, 55 per cent is met from aluminium scrap, on which the import duty is only 2.5 per cent, resulting in flooding of domestic...
Alcoa adds new sizes to Ultra One aluminum wheel family
Alcoa Wheel Products added to its Ultra One family of lightweight aluminium truck wheels with three new sizes here at the 2016 Technology & Maintenance (TMC) annual meeting: • A 24.5-in. by 8.25-in. wheel that weighs 51 lbs., 3 lbs. less than its predecessor • A 22.5-in. by 14-in. wheel that weighs 52 lbs., which is 2 lbs. less that the model it replaces • A 22.5-in. by 9-in. wheel that weighs in at either 48 lbs. - which is 3 lbs. lighter than the model it replaces - or at 56 lbs., based on fitment needs, with a 10,000-lb. load rating, making it ideal for refuse collection, logging, mining and other heavy-haul applications. Todd Hershberger, VP-sales and marketing for Alcoa Wheel Products, said during a press conference that those new wheel sizes will become available for ordering May 15...
South32 suffers US$1.7 bn impairment
South32, the spin-off of mining giant BHP Billiton, posted underlying first half earnings of US$26mn. The figure, for the six months ended December 31, compares with underlying earnings of US$460mn a year earlier, the firm said in a release. The new company took operational control of its assets a year ago and was successfully demerged from BHP Billiton on May 25 2015. Revenue came in at US$2.98bn, compared with US$4.09bn the year before, while underlying Ebitda fell to US$542mn from US$1.13bn. "Lower commodity prices reduced revenue by US$1.00bn, although this was partially offset by a stronger US dollar (US$401mn) and lower price-linked costs (US$94mn). Half year production records were achieved at Worsley Alumina, Australia Manganese (ore) and Cannington (zinc), while power sales at...
IME 2016 concludes successfully in Kolkata
The recently ended 6th International Mining, Exploration, Mineral Processing Technology, Metals & Machinery Exhibition at the Eco Park, Rajarhat, Kolkata, was an apt business and networking platform for the Indian metal and mining sector which is struggling with a number of issues like a volatile commodity market, environmental hazards and tribal uprisings. The four-day event which was held from February 24 – 27 saw a huge congregation of mining companies from all parts of the globe. Twenty five leading companies from China along with ten mining giants from Czech Republic, Poland, US and Australia participated in the 6th International Mining, Exploration exhibition here. There were exhibitors from Afghanistan, Belarus, Germany, Iran, Israel, Italy, Japan, United Kingdom, South Africa,...
EGA delivers strong results despite difficult global market conditions
Emirates Global Aluminium ("EGA"), jointly owned by Mubadala Development Company ("Mubadala") and the Investment Corporation of Dubai ("ICD"), has concluded its second year of operations. EGA's results were announced at its 2015 Annual General Meeting, held on Thursday 25 February 2016. On this occasion, Abdulla Kalban (EGA Managing Director & Chief Executive Officer) stated, "I am proud of the company's results in 2015. Last year was challenging for the aluminium industry, largely due to global macro-economic uncertainty, growth slowdown in China, a stronger US Dollar and falling oil prices. In this climate, EGA's strong results reflect the high quality of our planning, a focus on our customers and strength in operations. I want to take this opportunity to thank our employees, suppliers...
Budget 2016 impact: India aluminium stocks gain on 2.5% import duty hike
Shares of Vedanta Ltd. and National Aluminium Company gained on Monday after Finance Minister Arun Jaitley increased imports duty on aluminium to 7.5 per cent from 5 per cent effective April 1, in a bid to save the industry from imports that have captured more than half the domestic market. Aluminium industry in India is facing tough competition from cheap imports into the country while global aluminium prices have fallen 44 per cent to $1500 a tonne in January this year from $2662 per tonne in April 2011. Plant shutdown and job cuts are underway as capacity utilisation of domestic aluminium industry has fallen drastically in the last one and a half years as global prices declined. CEOs of aluminium producing companies like Vedanta and Hindalco had sought an urgent intervention from...
NALCO CMD TK Chand elected as the President of Aluminium Association of India
Dr. Tapan Kumar Chand, CMD of Navratna CPSE National Aluminium Company Limited (Nalco) has been unanimously elected as the President of Aluminium Association of India (AAI) in its National Governing Council Meeting, held in Bhubaneswar yesterday. AAI is the apex body representing the entire spectrum of Indian aluminium industry and is a part of world association. Earlier, the post of President was held by Mr. S.K. Roongta, former Chairman of SAIL and Vedanta Group. On assuming the post of President, Dr. Tapan Kumar Chand has welcomed the Union Budget 2016-17, presented in the Parliament today, describing it as a balanced budget with focus on growth. “On behalf of all the primary, secondary and downstream aluminium producers, I thank Govt of India for its proposal to increase the Basic...
Aluminium hits 4-1/2 month high after China cuts bank reserve ratio
Aluminium hit a 4-1/2 month high on Monday after top metals consumer China cut its reserve ratio for banks in an effort to revive flagging growth. Investors welcomed the move by China's central bank to reduce the amount of cash that banks must hold as reserves for the fifth time since February last year. "Any sense of proactive policymaking in China towards stabilising the economy and the exchange rate will be taken positively by commodity markets," said Nicholas Snowdon, metals analyst at Standard Chartered in London. Three-month aluminium on the London Metal Exchange gained 0.8 percent to close at $1,573 a tonne after touching $1,589, its highest since October 15. The premium for LME cash aluminium over the benchmark three-month contract CMAL0-3 jumped to $18 a tonne, the strongest...
Bonnell Aluminum to invest $18 mn, expand its automotive and specialty markets
Bonnell Aluminum, a subsidiary of Tredegar Corporation, announced it will be investing approximately $18 million over the next 12 months to fund an expansion project which will include the purchase of a new state-of-the-art aluminum extrusion line at its AACOA facility in Niles, Michigan. Planned startup is the second quarter 2017. “With continued growing demand from our customers, it is exciting to invest in this additional capacity, knowing that we will satisfy these opportunities with the high quality products and services that AACOA is known for in the industry,” commented Brook Hamilton, President and General Manager for Bonnell Aluminum. “Our facility in Niles is ideally suited for this project, with a well-run operation and a great team in place.” “AACOA has a solid market...
LME aluminium to stay high this week, may retrace to $1,527
Aluminium at London Metal Exchange (LME) will hover at highs this week after another step forward, according to the latest study by Shanghai Metals Market (SMM). SMM sees LME aluminium trading above $1,550 per tonne, with eyes on China PMI and US employment data. Demand recovery will push alumiinum stocks back down. This will drive SHFE aluminium up to near 1,500 yuan per tonne. Spot discounts in China will stay around 80 yuan per tonne, and trading will become brisk with return of processors. LME aluminium faces a resistance at $1,585 per tonne and may retrace to a support at $1,527. The resistance is provided by the 23.6 percent Fibonacci retracement on the fall from the November 6, 2014 high of $2,078.75 to the November 23, 2015 low of $1,432.50. The metal has been hovering below this...
Aluminium futures inches up 0.14% on spot demand, global cues
Aluminium prices edged up 0.14 per cent to INR 108.34 per kg in futures trade today as participants enlarged positions, supported by strong demand in the spot markets and a better trend in the base metals pack at the London Metal Exchange (LME). Aluminium for delivery in March inched up 15 paise, or 0.14 per cent, to INR 108.35 per kg in a business turnover of 49 lots in futures trade at Multi Commodity Exchange. Likewise, the metal for delivery in February traded higher five paise, or 0.05 per cent, to INR 108.40 per kg in 64 lots. Marketmen said increased domestic demand and metals strength at the LME after data, helped aluminium futures trade higher. Globally, aluminium was up 0.3 per cent at USD 1,565 per tonne at the LME.
Aluminium producers seek $125-130/T Q2 premium from Japan buyers
Some big aluminium producers are seeking a premium of $125-$130 per tonne from Japanese buyers for April-June primary metal shipments, up 14 per cent to 18 per cent from the previous quarter, four sources involved in pricing talks said on Monday. Japan is Asia's biggest importer of the metal and the premiums for primary metal shipments it agrees to pay each quarter over the London Metal Exchange (LME) cash price set the benchmark for the region. For the January-March quarter, Japanese buyers agreed to pay a premium of $110 per tonne PREM-ALUM-JP, up 22 per cent from the prior quarter. The latest quarterly pricing negotiations began late last week between Japanese buyers and miners including Rio Tinto Ltd , Alcoa Inc and South32 Ltd, and are expected to continue in March.
Queensland Bauxite negotiating with AID for development of NSW reserves
Australian mining company Queensland Bauxite has opened negotiations with Australian Infrastructure Developments (AID) to explore options for the transport of the former’s bauxite production in New South Wales. AID, a freight project developer, is proposing to build a national freight infrastructure connecting the country’s western inland corridor at Moree to Glen Innes, where it would link up with the Great Northern Railway. From Glen Innes, the line would proceed to the Port of Yamba. Queensland Bauxite’s New South Wales bauxite tenement is nearly adjacent to the proposed location of AID’s new line. Yesterday Queensland Bauxite indicated that the Pacific West link proposed by AID would likely make the New South Wales bauxite operation economically viable. In addition, Queensland Bauxite...
