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 regains ground on MCX, Mumbai
Aluminium prices surged 4 per cent last week, with the spot price on the London Metal Exchange (LME) closing on a stronger note at $1,562 per tonne on Friday. This is just above an important resistance at $1,560. The metal is up about 10 per cent from its low of $1,423 made in November 2015. Between May and November 2015, aluminium spot prices had plummeted over 27 per cent from a high of $1,959. On the domestic front, the aluminium futures contract traded on the Multi Commodity Exchange (MCX) rose 5 per cent last week to close at INR107.65 per kg. This contract moves in tandem with the LME spot price. A weakening rupee, against the dollar, is providing additional support to the domestic futures contract. Prices of most metals have been strengthening in the global markets due to the...
Chinese driven aluminium overhang to foil price bulls
A massive overhang of aluminium stocks, mostly due to rising Chinese production, is set to cap a tentative price recovery triggered by large output cuts. Last year plummeting prices and squeezed margins led to production cuts of around 5.5 million tonnes with the bulk, about 4 million tonnes, in China. Benchmark aluminium on the London Metal Exchange hit $1,432.50 a tonne last November, the lowest since May 2009. Prices of the metal used in transport and packaging have since recovered to around $1,500 a tonne, but a stronger rally may only encourage producers to restart idled output capacity. Large surpluses are due to a ramp-up in China, which accounted for nearly 55 percent of global supplies of around 57 million tonnes last year. "We think prices will stay around the $1,400/$1,500...
Aluminium futures rise on global cues, spot demand
Taking positive cues from global market and strong demand at domestic spot markets, aluminium prices edged up 0.52 per cent to INR 105.80 per kg in futures trade today as participants enlarged positions. Marketmen said increased domestic demand and a firming global trend where base metals gained with optimism that demand will recover in China after the government signaled increased support for the economy through higher spending and new measures to boost bank lending, helped aluminium futures to trade higher. At the Multi Commodity Exchange, aluminium for delivery this month inched up by 55 paise or 0.52 per cent to INR 105.80 per kg in a business turnover of 116 lots. Likewise, the metal for delivery in March traded higher by 35 paise, or 0.33 per cent, to INR 105.85 per kg in five lots.
The Aluminum Association publishes 2015 Automotive Aluminum Joining Manual
The Aluminum Association has published a multi-chapter manual that details the range of commercially available production processes for joining aluminum components in automotive applications. Developed in collaboration with the European Aluminium Association (EAA) and theAluminum Extruders Council (AEC), the joining manual is an essential reference for automotive designers and engineers as use of aluminum alloys in high-volume vehicles is expected to accelerate rapidly in the next decade. This book-length manual covers: - Fusion Welding - Arc Welding (new!) - Beam Welding - Resistance Welding - Brazing - Solid State Welding - Mechanical Joining - Adhesive Bonding - Hybrid Joining - Joining Dissimilar - Materials
Lindberg/MPH ships aluminum immersion holding furnace to large automotive die caster
Lindberg/MPH announced the shipment of an electric immersion aluminum holding furnace to a large automotive die caster. The equipment provided includes three electric immersion aluminum holding furnaces used to keep aluminum at die casting temperature. These aluminum holding furnaces utilize Lindberg/MPH patented board lining and high efficiency immersion tubes/heaters. A manually operated winch crane operates the center cover for cleaning. Unique features of these aluminum holding furnaces includes: • Efficient electric immersion heating. • Excellent temperature control and fast recovery. • Lindberg/MPH patented board lining. • Longer lining life. • Manually operated winch crane cover lift.
Felda to decide on settler aid after bauxite moratorium ends
Felda (Felda Global Ventures Holdings Berhad) will consider the form of assistance to be given to its settlers involved in bauxite mining after the three-month moratorium ends in April. Its chairperson Mohd Isa Abdul Samad said Felda needed to wait for the decision on whether the mining activities should continue with new guidelines or otherwise. “It is still too premature to make any plans to help the settlers whose income are affected by the moratorium. “We do not know yet if the bauxite mining will be continued or not, only then we can see how to help the settlers," he said when contacted by Bernama in Kuantan today. Hence he urged the affected settlers to be patient throughout the temporary halt period while the government identified new guidelines that are effective in carrying out...
As finances erode, Century Aluminum sets tight time frame for Mount Holly smelter
Century Aluminum still hopes state lawmakers will find a way to cut electricity costs at its Mount Holly smelter, but a shutdown by the end of May is looming. “We are working intently to produce a power-supply arrangement that makes this world-class plant competitive for the long term,” Mike Bless, the company’s president and CEO, said Thursday after Century announced its quarterly and annual earnings. Bless told investors during a conference call that Century must know by the end of next month whether there will be a legislative solution to Mount Holly’s electric costs. The company has arranged to buy power for the Berkeley County site only through May and could give the required 60-day notice to cancel its contract with state-owned electric utility Santee Cooper by the end of March....
LME aluminum poised for more gains next week
LME aluminum is on track for gains next week on improved market sentiment, SMM says. LME aluminum should rise to $1,520-1,560 per tonne. SHFE aluminum will advance to 11,100-11,400 per tonne, due to anticipation for a turnaround in aluminum consumption after the week-long holiday. Besides, aluminum stocks in major markets grew slower than post-holiday levels seen last year. Spot discounts in China will narrow to 150 yuan per tonne, thanks to returning of aluminum processors from the holiday.
Alcoa quizzed over future viability of Portland smelter without state subsidy
The Victorian Greens have called on aluminium producer Alcoa to publicly declare if the Portland smelter, in the state's west, can remain viable without a state subsidy. A 20-year power deal, providing the company with subsidised electricity at a price linked to the London Metal Exchange, is due to expire this year. The company last week confirmed it had made a failed bid to secure a transmissions discount from the Australian Energy Market Operator. Greens' leader Greg Barber said Alcoa must be clear if the smelter had a future without subsidies. "If they lose the subsidy, does that mean it's all over or do they have some other plan?" he said. "Please let the community know, we don't want to be reading about it the morning after. "What's important is that Alcoa has to actually say what...
Alba announces acting Chief Operations Officer
Aluminium Bahrain B.S.C. (Alba), the Bahrain-based leading international aluminium smelter, has further strengthened its senior leadership team with the appointment of Amin Sultan as the Acting Chief Operations (COO), effective immediately. Welcoming Amin Sultan into the executive team, Alba’s Chief Executive Officer, Tim Murray said: “Amin is another great example of Alba developing people from within the company. Amin, with his two-decade long experience and MBA background has a proven track record. I look forward to challenging Amin and see him rise to the next level of leadership.” Mr. Sultan joined Alba in 1997 as an Engineer in power station following which he was promoted to Superintendent in 2004, and from 2008 onwards, served as Manager and Senior Manager in power maintenance and...
Alcoa still positive about Wagerup alumina refinery expansion plans
Alcoa is keeping alive the dream of a billion-dollar expansion of its Wagerup alumina refinery in the South West after asking the State Government for more time to hold on to the all-important environmental approval. Alcoa of Australia managing director Michael Parker said the process to seek a further five-year relief was under way, a decade since the company was first given the green tick to proceed with expanding Wagerup refining capacity to 4.7 million tonnes a year. However, the expansion was put on hold on economic grounds. Already a world-class asset, the expansion would almost double Wagerup’s refining capacity and generate much-needed jobs in the South West. Mr Parker cautioned that the expansion proposal was still “largely on hold given the market conditions” though it was...
Chalco vows to raise its captive power ratio
Chalco will make efforts in raising its share of captive power in the future, updated a source from the company. The source said Chalco is just about 30% reliant on captive power, well below average industry level, with some aluminium smelters even entirely reliant on captive power. The company will make efforts in coal-electricity-aluminium integration and captive power plant construction in the future, the source added. Chalco’s latest report showed it expects to register a net profit of around 200 million yuan in 2015, a sharp reversal from a staggering loss of 16.22 billion yuan in 2014.
China Shanxi discovers huge bauxite resources in 2015
Shanxi Province, one of China’s major alumina producing regions, discovered vast bauxite resources in 2015, according to a spokesperson of the local Ministry of Land & Resources. The province discovered 30 million tonnes of bauxite resources during 2015, bringing total discovery of the aluminum smelting mineral resources to 324 million tonnes, according to the source.
Indonesia may ease ban on bauxite exports, says energy minister
Indonesia could change rules that ban exports of unprocessed minerals including nickel ore and bauxite, the country's energy minister said on Friday last week, referring to a revision of the country's mining law targeted for completion this year. "There could indeed be a relaxation of the ore (export ban) if the revision of the mining law allows it," Energy and Mineral Resources Minister Sudirman said at a recent event. The mining law review will need to be approved by both the government and parliament, Said added. Indonesia was the world's top exporter of nickel ore until 2014 when the government banned all unprocessed ore exports.
Malaysia bauxite freeze will not fix long-term damage, say academics
A temporary ban on bauxite mining would not be enough to remedy the long-term damage it caused, academics were quoted as saying in a report. They opined that the damage might be harder to fix, even if a moratorium on bauxite mining resulted in improvements in the environment. United Nations University research fellow Professor Dr Jamal Hisham Hashim was quoted as saying the mining areas needed rehabilitation with measures like refilling mines, and repairing damage to roads and neighbourhoods near the mines. Speaking at a forum on sustainable bauxite mining at Universiti Malaya yesterday, he said this was unlikely to be done by illegal miners. "Rehabilitation isn't likely, especially not by illegal miners. They can leave it to the land owners to clean up the mess," he was quoted as saying...
Rexam on track to complete a merger with Ball by June end
Drinks can maker Rexam said it was on track to complete a merger with American packaging company Ball by the end of June, as it it unveiled flat annual profits. The FTSE 100 company made £362m in underlying pre-tax profits in 2015, an increase of 1pc on last year, driven by rising sales and higher volumes in Europe, Africa, the Middle East and Asia. The company's strong growth in the Middle East was boosted by its recent acquisition of United Arab Can Manufacturing, while falling aluminium prices - the main raw material used in producing cans - also provided a helpful tailwind. However, restructuring charges and costs related to the forthcoming merger with Ball meant that actual pre-tax profits fell by 27pc to £250m. American-based drinks can manufacturer Ball is in the process of...
7th Glass & Aluminum + WinDoorEx Middle East opens its doors in Cairo
Glass & Aluminum + WinDoorEx Middle East opened its doors yesterday, and will be held till 20th February 2016 at the Cairo International Convention & Exhibition centre (CICC) in Cairo, Egypt. Glass & Aluminum + WinDoorEx Middle East is one of the largest trade fairs for windows, doors, facades, prefabricated components in the Middle East. At the fair the leading international manufacturers show their newest and most innovative products for the industry. The fair is a wonderful opportunity to make valuable business contacts with Egyptian and international experts and an ideal platform to showcase products and services on the market in the Middle East. Glass & Aluminum + WinDoorEx Middle East will probably be the base where lots of most important subjects will be talked about. This Trade...
Global primary aluminium market ends in deficit in 2015
The latest report published by the World Bureau of Metal Statistics (WBMS) indicates that global primary aluminium market has recorded a deficit during the year 2015. As per the report, the market reported a deficit of 356,000 tons when matched with the deficit of 589,000 reported during entire year 2014. The production of primary aluminium was up by 8% during the entire year when matched with the previous year. The global production rose by 4,103 kt during this period, when compared with a year ago. The total reported stock of metal has declined further by 6,000 tonnes during the month of December 2015. The stocks at the end of the year stood at 3,783 kt, which is sufficient to meet 24 days demand. It must be noted that the stock levels at the end of 2014 had stood at 5,020 kt. The...
