AL Circle Analysis: US scrap imports hit 580kt as China slips 3.2%, who drives aluminium recycling?
Aluminium scrap is no longer a side story in the metal’s market. Rather, aluminium’s next standoff is over scrap. As US imports surge 37 per cent while China’s purchases decline, manufacturers in Europe and India are confronting a common challenge of securing affordable, reliable raw materials. With recycling rates, trade barriers and low-carbon production reshaping market, the global industry faces a critical question: who will control the metal that powers its circular future? Join the fourth edition of the webinar "Hedging for recyclers - Become an expert in 6 hours" by Jorge Dyszel. A 1.1-billion-tonne stockpile: US stocks up, China steps back, India asks for access The US imported 580,000 tonnes of aluminium scrap worth USD 2.07 billion in H1 2026 , with Canada accounting for 63.62...
A should-cost analysis of an aluminium tower furnace in India: Comparing the economics of LPG, PNG, and electric energy sources
In precision non-ferrous casting and high-volume die-casting operations, thermal energy conversion represents one of the largest controllable operating expenses. In modern aluminium foundries, where margins are squeezed by primary metal price fluctuations and stringent customer cost breakdowns, even a modest INR 1–2/kg variance in liquid metal melting cost can translate into tens of lakhs of rupees in annual cost differences. A rigorous, transparent should-cost benchmark is therefore essential for procurement teams, foundry managers and strategic sourcing leaders. This analysis examines a baseline should-cost model for a 1,000 kg/hour aluminium shaft or tower furnace in an industrial foundry. It compares liquefied petroleum gas (LPG), piped natural gas (PNG) and electric energy across...
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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...
Volvo Cars gives new face to V40 with aluminium interiors
Volvo Cars gives its bestselling V40 and V40 Cross Country the new face of Volvo for Model Year 2017 with trim updates across the range. V40 will feature upscale aluminium interiors along with other critical components made from the lightweight metal. Central to the model year exterior updates are new grille meshes featuring the updated and more visually striking Volvo Iron Mark. The update also equips the V40 with the new ‘Thor’s Hammer’ headlights, resulting in a confident new look shared with Volvo’s new 90 Series cars. “The V40 is the best-selling Volvo model in Europe and the second-most popular Volvo model globally, making it a very important car for the company. With the updates for model year 2017 we make this already very successful model even more attractive to customers in the...
Hospitality and food packaging industry boom driving demand for aluminium foil
Food packaging industry is booming because of the requirement of food-on-the-go. The global packaging industry is expected to grow to $820 billion by 2016. The Indian packaging industry, growing at roughly15% annually, is estimated to become the fourth-largest in the world, with revenues of $43.7 billion in 2016, says a recent market research report. In a competitive world, packaging design and construction play a significant role in increasing revenues for hospitality industry, mostly out of ready-to-eat food and beverages segments. The changing pattern of consumption of food and beverages has been creating fresh demand for traditionally used packaging materials such as glass, aluminium, silver foils, tins, paper, paper boards and plastic. A wider variety of these materials is used in...
Linamar-GF Automotive selects Henderson County location for their new casting plant
Linamar and GF Automotive, a division of Georg Fischer, have zeroed in on Henderson County, North Carolina as the location for GF Linamar's new jointly-owned aluminium die casting plant to provide integrated light metal casting and machining solutions. Linamar and GF Automotive had jointly announced last summer that they were looking for a spot in the southeastern United States for a “high pressure, light metal die-casting plant.’’ The July news release did not specify a location, but said the companies hoped to begin operating the facility in 2017. Now that they have finalised the location, the construction work at the site will begin soon. Linamar chief operating officer Jim Jarrell said in an earlier release, the Canadian corporation would also acquire the existing Pure Power...
