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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Aluminium finds use in newly launched gadgets for personal use
Onkyo Corporation, the leading Japanese consumer electronics manufacturer, specializing in premium equipment, has launched wireless headphones with aluminium housings. Onkyo has taken the wraps off a whole host of new headphones, including premium on, over and in-ear designs. Onkyo's H900Ms are a closed pair of over-ear cans and cost £230. Like the brand's earlier bestseller A800s, H900Ms also use 50mm drivers with aluminium housings. Aimed at the portable market, there's an extra-wide headband for added comfort. They're finished in black and gold, a colour scheme that features across the entire new range. The H500M (£130) on-ears feature 40mm drivers in a rigid aluminium housing and a claimed frequecy range of 7Hz to 40kHz. The gadget also packs in an in-line mic and a remote in its...
Bauxite mining moratorium may be extended; rehabilitation will take 2 years, says expert
The three-month moratorium on bauxite mining in Pahang may be extended if authorities could not meet the terms by its April 15 deadline. Natural Resources and Environment Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar said he was satisfied with the progress of stockpiles clearing at the Kuantan Port, but will make another assessment at the end of March. Rehabilitation Pahang's bauxite mining areas can be rehabilitated within a relatively short period of two years if proper techniques are used to restore the land's soil and mineral structure, according to Malaysian Stormwater Organisation vice-president Datuk Ahmad Fuad Embi. Asked to comment on reports that it would take many years to rehabilitate the bauxite mines in Pahang, Fuad, who was there to atted a forum, replied: "I believe...
Major shareholder plans to take Xinren Aluminum private in S$780m offer
Aluminium manufacturer Xinren Aluminum Holdings on Thursday said it has received a S$780 million takeover offer from its major shareholder. The buyer, Merit Stand Inc, will offer to take over the company at S$0.60 per share, which is 25 per cent more than Xinren's last traded price of S$0.48. Merit intends to delist the company. Merit is owned by Zeng Chaoyi, who is also sole shareholder of Sunshine International Global Capital. Sunshine owns 33 per cent of the Xinren Aluminum. All in, the Zeng family controls 75 per cent of the company.
China aluminium imports fail to pick up despite rise in domestic prices
Chinese aluminium import interest remained lackluster despite a rise in domestic aluminium prices over recent weeks, as the spread between import and domestic metal prices has stayed wide, market participants said Wednesday, last week. The London Metal Exchange official cash price closed at $1,575.00-1,575.50/mt on February 23. At $1,575/mt, with the current $100-110/mt Asia premiums, and taking into consideration 17 per cent VAT and port charges, the delivered price to China would equate to Yuan 12,897-12,974/mt ($1,975-1,987/mt). The front-month aluminium contract on the Shanghai Futures Exchange closed at Yuan 11,150/mt on Tuesday, up from Yuan 10,985/mt a week before, and also from Yuan 10,830/mt a month ago. “There’s still around a $300 spread between import and domestic prices, so...
Duty hike on aluminium to impact India's downstream industry
Stating that the production cost of aluminium in India rose even as it became static globally, the Economic Survey today said raising tariffs to check imports will impact downstream sectors like power and construction. Indian aluminum industry will continue to face difficulty unless world prices increase because in the short-run it is "virtually impossible" to reduce production cost, said the 2015-16 report card of state of the economy tabled by Finance Minister Arun Jaitley in Parliament. Globally, aluminum prices like other metal prices are cyclical and though it is difficult to forecast when they will begin to move upwards, the trend is expected to change when world industrial growth improves, it added. "Imposition of additional duties to reduce import of aluminum may erode the...
Dubai Investments' Masharie unit eyes record extruded aluminium production
Masharie, the private equity arm of Dubai Investments (DI), has announced plans to expand its extruded aluminium production capacity by over 10,000 tonnes per annum as demand from downstream industries, transportation and electrical sectors surges across the UAE and GCC. Masharie subsidiary Emirates Extrusion Factory (EEF), a leading aluminium extrusion company based in Techno Park Dubai, is commissioning its third extrusion line by July 2016, which will increase the production capacity by 6,000 metric tonnes per annum. EEF will also start its new powder coating plant with an annual capacity of 5,500-6,000 metric tonnes by July this year. Another Masharie subsidiary White Aluminium Extrusion (WAE) - a leader in aluminium and glazing sector - is set to commission an anodizing plant with...
LME aluminium may hover below $1,585 or retrace to $1,538.50
LME aluminium faces a resistance at $1,585 per tonne and may hover below this level for one day or retrace to the February 24 low of $1,538.50. 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. A break above this barrier could open the way towards the next resistance at $1,641, the 38.2 percent Fibonacci retracement on the fall from the May 6, 2015 high of $1,977 to $1,432.50. The break could be confirmed when the metal climbs above $1,590.
European Parliament’s resolution on Montenegro vindicates Central European Aluminum Company
The resolution on the European Commission’s 2015 Progress Report on Montenegro was adopted by the European Parliament’s Foreign Affairs Committee on February 23. The vote was hailed by the Central European Aluminum Company (CEAC). In a press release, the CEAC said: “We are heartened by the overwhelming support of the Committee for a sustainable and negotiated solution to the KAP dispute and are particularly encouraged by its call for a full and independent audit into the dispute. The magnitude of that support [50 in favour, 3 against] is testament to how seriously the Committee takes the KAP dispute and the deep corruption within Montenegro, and we urge all members of the European Parliament to give their full support to this strong resolution in plenary session in March”. The dispute...
Goldman Sachs sees aluminium price slide as China ups exports
Goldman Sachs expects the outlook for global aluminium prices to deteriorate over the next 12 months as China exports more semi-manufactured metal. "(The) aluminium market continues to face the greatest bearish fundamental shock in a generation, and perhaps, in its history," it said in a research note. So far, however, China's daily average primary aluminium output fell to 80,000 tonnes in January, data from the International Aluminium Institute (IAI) showed. "This is the first production decrease on a year-on-year basis, reflecting Chinese smelters' collective efforts in reigning in oversupply," said Argonaut Securities in a note. It added that recent incentives should reinvigorate the country's construction industry. "Construction accounts for 35 per cent of production. And it also...
India parliamentary committee pitches for raising import duty on cheap aluminium scrap
In a bid to protect domestic firms, a Parliamentary Committee has suggested the government to raise import duty on aluminium and raised "serious concern" on "adverse impact" of cheaper imports on the profitability of state-run Nalco . The Committee on Public Enterprises, chaired by Shanta Kumar, also rapped the state-run aluminium maker for failing to achieve its capacity utilisation programmes. "Committee notes with serious concern that import duties on aluminium and aluminium scrap are having an adverse impact on the profitability of NALCO's production business. As deposed by Mines Secretary, out of total aluminium consumption in the country, 55 per cent is met from aluminium scrap and 45 percent through aluminium, on which the import duties are 2.5 per cent and 5 per cent respectively,...
Aluminium demand recorded 1% rise in the US, Canada in 2015
The preliminary statistics released by the Aluminium Association indicates marginal rise in aluminium demand in the US, Canada during 2015. The producer inventories in Dec ’15 were up slightly when matched with the previous month. Also, aluminium scrap purchases by the industry during Dec ’15 dropped marginally year-on-year. The aluminium demand in the US and Canada totaled 25.74 billion lb during entire year 2015, marginally higher by less than 1 per cent when compared with the demand in 2014. The above figure includes shipments by domestic producers and imports. The demand for semi-fabricated products was up by 3.7 per cent in 2015 over the previous year to 18.303 billion lb. Meanwhile, the demand totaled 1.343 billion lb during the month of Dec ’15 alone, dropping marginally by 2.2 per...
Environmental NGO suggests Malaysia bauxite moratorium be extended
Malaysia’s National Treasures Protection Society (Peka) Pahang chapter president Khaidir Ahmad says that the ongoing bauxite moratorium should be extended due to the failure of the Kuantan port authority to meet the February 15th deadline for clearing the port of stockpiled bauxite. Runoff from the stockpiled bauxite led to serious pollution of Kuantan’s harbor waters. “The first phase of moratorium is to clear all the stockpiles at the port area, but they have only cleared half of it,” Khaidir told a local news outlet. “That’s why we have no confidence that they will meet the target for the second phase. If they cannot meet the dateline, they will have to extend [the moratorium] for another three months. But we will see what the minister says when he makes an assessment on the ground,”...
Aluminium Closures campaign makes convenience fun at ProWein
Following last year’s first, successful attendance at ProWein, the leading trade fair for wine professionals, the Aluminium Closures – Turn 360° campaign that promotes the advantages of aluminium closures for winemakers, will be back in Düsseldorf in March. The campaign team can be found in the dedicated “Packaging & Design” sector adjacent to the ProWein Forum, Hall 13, Stand E50. With a fun focus on the convenience that aluminium closures bring, there will be a daily competition on the stand to find the ‘Turn 360° Champion 2016’ who demonstrates the fastest opening & closing time! The competition will take place daily on the hour from 12pm with the last opportunity to participate at 6pm. Each contestant will be asked to open, re-close and turn five bottles of wine upside down as fast as...
Aluminium rolled product suppliers seek a pie of China's auto panel trade
Aluminium end use applications are growing and how. In Asia, China, as always, is leading the league as the most promising market of aluminium rolled products, providing the much needed traction to the entire aluminium value chain. The sectors that are creating maximum demand are beverage packaging and automobiles. Automobiles, especially, is zooming ahead to create major business opportunities across the world. China being the largest auto market in Asia, aluminium makers are eyeing a major chunk of it. Emission rules being made stricter, aluminium die casting manufacturers and rolled product suppliers are lining up to sell their products to the Chinese auto makers. Kobe Steel will launch as early as March an aluminium automotive panel plant in Tianjin, where Toyota Motor operates...
Alumina Ltd upbeat about 2016 alumina prices despite volatility
Alumina Ltd, a 40 per cent business partner of Alcoa World Alumina and Chemicals (AWAC), is seemingly optimistic about alumina market scenario in 2016. The Australian mining company predicted, alumina prices will improve globally this year and says it can withstand any kind of volatility. Alumina Ltd posted a full year net profit of $US88.3 million ($A122.53 million) after paying for a range of restructuring costs related to shutting down capacity in its Alcoa World Alumina and Chemicals (AWAC) joint venture with metals giant Alcoa. Chief executive Peter Wasow said supply growth overshot alumina demand in 2015, but the current market price was unsustainable. "We can withstand whatever the market throws at us. We believe some recovery in alumina prices is likely this year but many...
Queensland Bauxite looks at freight options in NSW
ASX-listed Queensland Bauxite has started discussions with freight project developer Australian Infrastructure Developments (AID) regarding transport options for its New South Wales bauxite deposits. AID was proposing to build a national freight infrastructure network providing a direct and unconstrained link connecting the western inland corridor at Moree with the Great Northern Railway at Glen Innes, and from there to the Port of Yamba. The company’s New South Wales bauxite tenement lies close to a section of the proposed new rail line. Queensland Bauxite said on Thursday that the proposed Pacific West rail link was anticipated to create a viable bauxite export operation from the New South Wales bauxite project. Meanwhile, Queensland Bauxite has told shareholders that the Queensland...
Vedanta, Hindalco to continue with cost rationalization
India’s top two aluminium manufacturers - Vedanta Ltd and Hindalco Industries Ltd - are planning further cost cuts in the face of rising cheap imports from China and drop in price realizations - a situation that the steel sector too has been facing. More than half of the domestic demand for aluminium is now being met through imports. And in response to this, India’s biggest producer of aluminium Vedanta Ltd has already gone in for job cuts. “Cost reduction drive will continue, job cuts have already been done. If the situation prevails, and if LME (London Metal Exchange prices) do not give us the support and if we do not get the intervention by the government, hard calls will need to be taken,” said Abhijit Pati, chief executive officer-aluminium, Vedanta Ltd in an interview over phone on...
“Our aim is to strengthen the relationship between GCC & EU,” Mahmood Daylami, Founder & General Secretary, GAC (Gulf Aluminium Council)
The GAC (Gulf Aluminium Council) is an organization that represents, promotes and protects the interests of the aluminium industry within the Gulf region. One of the main objectives of the Council is to provide a forum for the aluminium industry, such as the recent Meeting in Brussels, which was held in February 2016 and attended by outstanding members of the EU parliament and the most relevant exponents of the European and Arab Aluminium industry. In his interview, Mahmood Daylami, Founder and General Secretary of GAC describes from his perspective, the possible strength of an interchange between the GCC and Europe . Excerpts from the interview: AlCircle: How would you describe, in general, the trade relationship between the GCC and the European Union? MD: The trade relationship between...
