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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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...
Alba reports 2015 results: Production topped 960,643 mt up by 3.1% YoY
Aluminium Bahrain B.S.C. (Alba) released its full-year and fourth quarter of 2015 results on Thursday, February 18, 2016. Alba reported total sales of BD 766.7 million (US$ 2.039 billion) in 2015 versus BD 821.6 million (US$ 2.185 billion) in 2014, down by 7% YoY due to the collapse of all-in-prices. As for the fourth quarter of 2015, total sales totalled BD 176.3 million (US$ 468.9 million), down by 21% YoY, versus BD 222.2 million (US$ 590.9 million) in Q4 2014, owing to the double dip of LME and premium prices. Net Income stood at BD 59.9 million (US$ 159.5 million) in 2015 compared to BD 96.5 million (US$ 256.5 million) in 2014 - down by 38% YoY; while the company reported a net loss of BD 15.8 million (US$ 42 million) in the fourth quarter of 2015 versus Net Profit of BD 34.6 million...
Century reports a net loss in Q4 2015, YoY primary aluminium shipments rise 6.3%
Century Aluminum Company reported a net loss of $43.1 million for the fourth quarter of 2015. Results were favorably impacted by a $23.5 million lower of cost or market inventory adjustment and $3.4 million related to non-cash, non-recurring post-retirement benefits. Results were negatively impacted by a $3.5 million charge related to the partial curtailment of operations at Hawesville and Mt. Holly, a $5.0 million charge for depreciation related to Mt. Holly purchase accounting and an $11.6 million impairment charge at BHH. After consideration of these items, the company reported an adjusted net loss of $49.9 million and an adjusted loss per share of $0.53 for the fourth quarter. For the fourth quarter of 2014, Century reported net income of $75.8 million. Sales for the fourth quarter of...
Norsk Hydro cuts 2016 global aluminium demand forecast
Norsk Hydro, one of the world's largest aluminium producers, cut its 2016 forecast for aluminium global demand, including China, to 3-4 per cent from 4-5 per cent previously, as it reported quarterly earnings that beat forecasts on Wednesday. Prices of aluminium - used in the aerospace, construction and automotive sectors - have been hit by concerns about oversupply, compounded by worries over a Chinese economic slowdown. The LME benchmark three-month aluminium is down around 16 per cent over the past 12 months and was trading around $1,520 on Wednesday. "For 2016, global primary aluminium demand is expected to increase by 3-4 percent," the firm said in a statement, adding nevertheless that market conditions had brightened. "Following several years of challenging market conditions, the...
Indian aluminium product manufacturers post mixed results for quarter ended Dec '15
Hind Aluminium posted a net profit while ESS SEE Aluminium and Manaksia Aluminium reported a loss for the quarter ended December 2015. Hind Aluminium Industries has reported a standalone total income from operations of INR 145.67 crore and a net profit of INR 2.52 crore for the quarter ended December 2015. Other income for the quarter was INR 1.11 crore. For the quarter ended December 2014 the standalone total income from operations was INR 105.21 crore and net profit was INR 0.80 crore, and other income INR 2.45 crore. Hind Aluminium shares closed at 77.90 on February 15, 2016 (BSE) and has given -6.48% returns over the last 6 months and 60.29 per cent over the last 12 months. ESS DEE Aluminium has reported a consolidated total income from operations of INR 106.62 crore and a net loss of...
Aluminium market rises on short covering, open interest drops 6.57%
Aluminium settled up 0.54 per cent at 103.15 as support seen from ShFE aluminium which climbed 1.5 percent rallied on Tuesday on hopes that China would unleash fresh easing measures to kickstart its economy after January trade was dragged down by faltering growth in global markets. Support also seen after the Asian shares consolidated to gains as the Chinese currency and shares show signs of stability, oil prices rebound, and solid U.S. consumption data suggest last week's sell-off was overdone. Overnight trading was light with U.S. markets closed for the President’s Day holiday. Metals has been well-supported in recent weeks amid indications global economic and financial headwinds could make it tough for the Federal Reserve to raise interest rates as much as it would like this year....
LME aluminium may retrace to $1,515
LME aluminium may retrace to a support at $1,515 per tonne, as it failed to break a trendline resistance around $1,540. The trendline is a part of a triangle, which suggests that aluminium may retrace towards the lower trendline support around $1,490. Wave pattern indicates the metal is riding on a wave C, which has only briefly extended above a resistance at $1,530, its 61.8 percent Fibonacci projection level. Even if this wave is capable of travelling to $1,581, the 100 percent projection level, it may be disrupted by a correction to the 50 percent level at $1,515. A break above $1,540 could lead to a gain to $1,549, the 76.4 percent level.
Rexam supports Swedish craft brewer with first canned beer range
Southside Brewing Company has produced its first ever canned Western pacific IPA, boosting the company’s sustainability credentials. The 330ml aluminium cans, manufactured at Rexam’s Malmö plant, are available in select regions and retail channels throughout Sweden. Tommy Eriksson, owner of Southside Brewing Company, said: “I’ve been working in the craft beer industry for over 26 years and seeing the first line of our canned IPA has been monumental. Sustainability is important to the Southside Brewing Company and it made sense to use aluminium, enabling us to recycle, reduce waste and do our bit to lower our carbon footprint. We hope the change will encourage other Swedish craft brewers to do the same and we would definitely recommend Rexam to help them do so.” Arjen van Zurk, marketing...
CIT reprimands DOC for scope ruling in Chinese aluminium-curtainwall battle
The U.S. Department of Commerce (DOC) will have to revisit its decision to extend anti-dumping and countervailing duty orders on some curtainwall units imported from China. Last week, Judge Donald C. Pogue of the U.S. Court of International Trade (CIT) reprimanded the DOC for its March 2014 scope ruling that determined Yuanda’s unitized curtainwall units fall under orders on aluminium extrusions from China. Yuanda, Jango Curtain Wall Americas, Permasteelisa and their affiliates challenged the decision in the CIT, arguing that the scope ruling “is not in accordance with law, unsupported by substantial evidence, and arbitrary and capricious,” according to court documents. The United States, named as the defendant, opposed the motion, as did Architectural Glass & Aluminum Co., Walters & Wolf...
Rockman Industries targets INR 5,000 crore turnover by 2020
Rockman Industries, a Hero Group company, and one of the largest suppliers of aluminium die casting, two-wheeler alloy wheels and chain in India, has targeted a turnover of INR 5,000 crore by 2020. According to company officials, revenue grew by 20 percent YoY during FY 2014-15 when its turnover stood around INR 1,850 crore. For the ongoing financial year, the company expects to cross the INR 2,300 crore turnover mark, thereby growing by 24 percent. Talking to Autocar Professional on the sidelines of the 2016 Auto Expo – Components Show, Prashant K Gupta, AVP – sales and marketing, Rockman Industries, said: “Our 2020 target is to achieve a turnover of INR 5,000 crore, and this could be realised via organic and inorganic growth.” “Close to 80 percent of our operations cater to the...
IBAAS 2016 to unfold “Aluminium Industry- The Evolving Asia-Pacific Story”
The International Bauxite, Alumina & Aluminium Society has announced that the fifth IBAAS International symposium (IBAAS-2016) will be held in Goa, India during September 26 - 28, 2016. The theme of the IBAAS-2016 symposium is “Aluminium Industry- The Evolving Asia-Pacific Story”. The first day of the Symposium is entirely devoted to Energy Reduction in Aluminium Smelting Industry and is organized jointly with the Indian Institute of Metals. The symposium organizing committee is formulating a world class program focusing on key topics and issues in the bauxite, alumina, non-metallurgical applications of bauxite and its derivatives, aluminium and aluminium downstream industry and secondary sectors. Objectives of the Symposium: • Develop a Road Map for Aluminium Smelters in India • Provide...
Nabaltec AG to form a wholly-owned subsidiary in Tokyo
Nabaltec AG, the leading German supplier of functional grade aluminium oxide and aluminium hydroxide for numerous innovative applications, will be further expanding its operations in Asia in the first quarter of 2016 with the formation of a wholly-owned subsidiary based in Tokyo, Japan. Nabaltec Asia Pacific K.K. is to be engaged in marketing and sales for Nabaltec AG's entire product portfolio, working closely with regional sales partners. This will give Japanese customers a direct contact person on-site while at the same time advancing the company's business in the Asian market through this new presence. Johannes Heckmann, Member of the Board of Nabaltec AG stated as follows: "We have been operating in the Asian market for almost two decades, we have been working closely and...
I cannot stop all imports, says Nirmala Sitharaman; Indian aluminium producers get the message
Even as the clamour against increasing imports from countries like China has been growing louder, commerce and industry minister Nirmala Sitharaman said last week that the onus was on the industry to deal with rising imports of several essential items. “I cannot stop all imports... but India’s manufacturing companies have to capture this market and identify how they can link themselves to the global value chain,” she said at the Make in India event in Mumbai last week. Sitharaman’s remarks came shortly after K.M. Birla, chairman of the Aditya Birla Group, took strong objection to dumping by China. “It’s creating an unlevel playing field. It’s like asking someone to play cricket with one hand,” said Birla. Birla’s firm Hindalco Industries Ltd, India’s second largest aluminium producer, has...
JVM Castings appoints Group Sales Manager to steer growth in new markets
JVM Castings has announced the appointment of Bob Freeman as the new Group Sales Manager. Bob, who brings with him 32 years of experience in the castings and automotive industries, will help JVM meet and exceed its growth targets over the next few years. In recent years, Bob has served important Sales & Purchase Management roles at King Automotive Systems Ltd and Sarginsons Industries Plc. His background in aluminium castings for the automotive, construction and civil engineering sectors made him a natural choice for JVM Castings. As Group Sales Manager at JVM, Bob will be responsible for enhancing the development of the company throughout its existing customer base, ensuring current clients receive the maximum value and support as well as seeking opportunities across new markets. Bob...
Biosca new business area president for Sapa Building Systems
Karsten Lundgaard is leaving his role as president of Sapa's aluminium building systems business area to seek new opportunities outside the Sapa group. He had been responsible for the operations since July 2014. As of Monday, February 15, Salvador Biosca will assume the role as business area president in Sapa Building Systems (SBS). Biosca has extensive international experience within the industry and Sapa, from several line positions in both aluminium extrusion and tubing. In 2013, he became president of Sapa's Precision Tubing business area. "SBS has been through a tremendous turnaround over the past two years, and the performance in safety, productivity and profitability has been considerably improved. I'm a strong believer in the further potential and future of SBS, and I am very...
Guinea general strike will not affect bauxite production, miners assure
A general strike in Guinea that began on Monday, February 15, will not curb production of bauxite, the country's top producer Guinea Bauxite Company (CBG) said on Tuesday. The miners, however, have announced their support for a nationwide protest against lowering of wages and high fuel prices. Guinea holds nearly a third of the world's reserves of bauxite, a metal used to make aluminium, and currently produces around 18 million tonnes a year. Workers at CBG, Africa's biggest bauxite mining company, received a notice from their union asking them to show solidarity for the nationwide strike demanding wage hike and lowering of fuel prices. "The CBG and Guinea Gold Corporation (AngloGold Ashanti ) joined the movement," Mamady Mansaré, general secretary of the National Confederation of Workers...
Declining aluminium prices hit Hydro's earnings, production soars in Brazil
Norwegian aluminium giant Norsk Hydro has announced fourth quarter results of 2015. The underlying earnings before financial items and tax declined to NOK 1,566 million in the fourth quarter, down from NOK 2,215 million in the third quarter of 2015. The decline mainly reflected lower aluminium and alumina prices and a continued decline in realized premiums, partly offset by positive currency effects. Underlying EBIT: For the full year 2015, Hydro’s underlying EBIT climbed to NOK 9,656 million from NOK 5,692 million in 2014, lifted by positive currency effects and supported by successful industry-leading improvement programs across Hydro. "The decision to build the Karmøy technology pilot marks an important milestone for aluminium, and our ambition to be the industry leader on technology...
Orbite ships additional 5N and 5N+ Alpha high purity alumina samples
Orbite Technologies Inc. announces it has shipped five additional high purity alumina samples to prospective customers. Four of the five prospective customers have received, for the first time, 5N (99.999%) samples as per their required specifications, while the fifth received a 5N+ (greater than 99.999%) sample. This customer is currently also assessing Orbite's HPA in gamma crystalline form. The samples shipped continue to show the same consistent product quality as previously shipped samples, confirming the stability of and the control Orbite has over its process. To date, Orbite has shipped a total of 22 samples to 16 prospective customers including 3 repeat orders. Additionally, Orbite has successfully commissioned its milling equipment at the Cap-Chat facility and will be shipping...
