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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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...
Drinks can makers Ball, Rexam launch US$3b asset sale ahead of merger
Drinks can manufacturers Ball Corp and Rexam Plc have begun the process of selling assets, potentially worth more than US$3 billion, to meet antitrust regulations ahead of their planned merger, several people familiar with the matter said. Both companies are expected to meet with representatives of buyout groups Blackstone , Apollo , CVC, Onex and Madison Dearborn, as well as with peers Silgan and Ardagh, before final bids are due in mid-March, the sources said. US-based Ball's planned £4.4-billion (US$6.4 billion) takeover of Britain's Rexam will merge the world's two largest beverage can makers by volume - which supply Coca-Cola Co and Anheuser-Busch InBev - and should improve efficiency and cut costs. However, the deal triggered concerns in the European Commission that it would drive...
Alcom on track to profitability after three years of losses
Aluminium Co of Malaysia Bhd (Alcom) is on track to return to the black for the financial year ending March 31, 2016 after three years of losses. The aluminium sheet and foil producer told Bursa Malaysia that it made a net profit of RM3.11mil in the third quarter ended December 31, 2015 compared with a loss of RM1.65mil a year earlier. “The improved revenue per metric tonne, especially for the export sales, and a tight rein on direct costs were the main contributory factors for this improved result,” the company said. The better third-quarter performance led the Klang-based company to swing to a net profit of RM2.14mil for the nine-month financial period ended December 31, 2015, from a loss of RM3.93mil in the previous corresponding period. Revenue for the financial year to-date grew 3.9%...
Work stoppages announced at Rio Tinto Alcan
Rio Tinto has finally announced work stoppages at the smelter to be effective next week. This will bring aluminium exports to a stand-still, as workers try to gain leverage for wage increases. Vísir reports that the stoppages are to begin on February 24, and will continue indefinitely. The workers involved all belong to the trade union Hlíf, who oversee the export division of Rio Tinto Alcan in Iceland. With the start of these stoppages, no aluminium produced at the smelter will be offloaded, distributed, or shipped out to other countries, effectively rendering any aluminium production superfluous. As reported, workers at the smelter have been in negotiations with management since at least 2014, where they have been fighting for wage increases. It was forecast that the smelter would be...
Rusal sees global aluminium surplus reversing into deficit in 2016
Rusal expects global aluminium market to swing into deficit in 2016 from 2015’s surplus, according to its recently released 2015 annual report. The global aluminium giant sees global aluminium market in 1.2 million tonne deficit in 2016, reversing from 600,000 tonne surplus in 2015. Rusal sold more aluminium than it produced in 2015. Its report showed its aluminium sales were 3.64 million tonnes in 2015, which not only beat its aluminium production (3.6 million tonnes), but also rose 3.2% from 2014. Rusal expects global aluminium demand to grow 5.7% to 59.5 million tonnes in 2016, citing strong demand in North America, Europe and Asia.
US shredded scrap prices drop; US aluminium Scrap prices show flat trend
United States shredded scrap prices dropped during the week ended February 12, while major US aluminium scrap commodities weekly average prices on Scrap Register Price Index showed an almost flat trend. According to TSI, US Midwest weekly shredded index fell by $3 a long ton during the week to $182 a long ton (delivered mill). The February buy-week finished up essentially sideways, as expectations of further price hikes to those seen in January were dampened by export yards selling tonnages domestically. TSI’s US 10-day monthly average for February was $183 a long ton, down by $5 a long ton month-on-month. The weekly average scrap prices of Al/Cu Rad with Iron, Al/Cu Radiator, Alum Breakage, Alum Litho Sheets, Alum Old Sheet, Alum Transformer and Mix Alum Casting remained almost flat...
Stronger dollar helps Romanian aluminium producer Alro turn to profit
Romania’s only aluminium producer Alro Slatina recorded an adjusted net profit of EUR 19.1 million in 2015 compared to adjusted losses of over EUR 30 million in 2014, as its turnover went up by 15% to EUR 517 million. The company managed to compensate part of the decline in international aluminium prices by increasing the sales volumes, especially for higher value added products. However, its turnover increase was determined by the higher USD/RON exchange rate, as the company quotes its products in US dollars. The average USD/RON exchange rate was 19% higher in 2015 compared to 2014. Alro’s bottom line was also positively impacted by the state’s decision to cap the big industrial energy consumers’ contributions to the renewable energy support scheme. “The investments of over USD 550...
Higher power costs to make survival harder for Chinese aluminium smelters
Chinese aluminium smelters, already battered by multi-year low aluminium prices , will find it even harder to survive as the latest policy will add to their power costs. China’s Ministry of Finance issued a notice on collection of industrial enterprise restructuring special fund, mainly targeting power plants and companies with captive power plants, effective January 1, 2016. Aluminium smelters, big users of power, will bear the brunt. SMM statistics found about 75% of China’s aluminium capacity relies on captive power. The notice does not cover companies in some regions, such as Xinjiang and east Inner Mongolia, though. Those in Shandong will be required to pay 0.0139 yuan/Kwh, according to the notice, which equates to a 200 yuan/tonne increase in costs for local aluminium smelters; when...
Aluminium China brings together electronics manufacturers and aluminium processing companies
With the rapid development of consumer electronics, with shorter life cycles and less time between upgrades, metal is increasingly replacing plastic as the shell material of choice, reducing costs and providing a lighter, slimmer and more environment friendly alternative. A look at some of the latest mobile phones in 2016 including LG’s curve screen, the Sony Xperia Z6 and HTC X9, along with Chinese brands such as LeTV Max Pro, Huawei Mate 8 and Lenovo K4, shows that they all have one feature in common, a metal shell. Traditionally, metal shells for consumer electronics were made mainly of aluminium-magnesium alloy or stainless steel. However, with complicated processing technologies and high costs, aluminium alloy is now replacing aluminium-magnesium, offering a superior safety record...
Fletcher Building : Aluminium JV to create new windows and doors business
Fletcher Building Limited announces it has reached agreement to create a 50-50 joint venture between its Fletcher Aluminium windows and doors business and NALCO. The new business will be jointly owned by Fletcher Building and NALCO, with each having an equal shareholding. Fletcher Aluminium and NALCO will each contribute all of their business assets to the new entity, including intellectual property, and all employees of the two businesses will transfer to the joint venture. Ron Holden, the current Managing Director of NALCO, will become Managing Director of the new entity. In the 18 months following formation of the joint venture, it is proposed the Fletcher Building manufacturing site in Auckland will close. Fletcher Building will be funding its share of the capital expenditure to...
Norsk Hydro to build the Karmøy technology pilot
Hydro has made a formal build decision for the planned full-scale technology pilot at Karmøy, Norway, aiming to verify the world's most climate and energy efficient production of primary aluminium. Total costs are estimated at NOK 4.3 billion, consisting of net project costs of NOK 2.7 billion and around NOK 1.6 billion in support from Enova. First metal from the technology pilot is expected during the second half of 2017. "After several successful improvement programs, the next steps in our efforts to further strengthen our cost curve position will increasingly rely on our ability to advance our industry-leading position in technology and innovation," says Hydro president and CEO Svein Richard Brandtzæg. "The Karmøy technology pilot will play a key role in realizing this ambition,...
Odisha's bauxite reserves to attract more than INR 30,000 cr in next few years
It may be early yet, but there seems to be signs of revival in big ticket investment in Odisha's aluminium sector. If recent announcements are anything to go by, the state, home to more than half of India's bauxite reserves, is poised to attract investment worth well over INR 30,000 crore in the next few years. While engineering major Larsen & Toubro (L&T) said it is hopeful of getting final clearances for its estimated INR 12,000 crore greenfield refinery project, public sector major National Auminium Company (Nalco) said on Monday it has committed INR 20,550 crore for expanding its alumina refinery at Damanjodi and setting up an aluminium park at Angul. Natural resources giant Vedanta Ltd also said it will sign a MoU with Odisha for an aluminium park, expected to garner investments of...
Kaiser Aluminum posts net loss of $237 mln for the year ended Dec 31, 2015
Full Year 2015 Results and Business Highlights: • Net Sales $1.4 Billion; Value Added Revenue Up 8% to $790 Million • Operating Loss $346 Million; Adjusted EBITDA $183 Million; EBITDA Margin 23% • Record Shipments of Heat Treat Plate and Automotive Extrusions • Expanded Sales Margins - Improved Pricing and Lower Contained Metal Costs • Continued Investments For Further Growth, Enhanced Efficiency and Quality • Returned ~$77 Million to Shareholders Through Quarterly Dividends and Share Repurchases Kaiser Aluminum Corporation reported a net loss of $237 million, or $13.76 loss per diluted share, for the year ended December 31, 2015, including the previously announced $307 million after-tax, non-run-rate charge associated with the termination of defined benefit accounting and the removal of...
“Sustainability questions are increasingly important for every industry…aluminium industry is no exception,” Dr Fiona Solomon, Executive Director, Aluminium Stewardship Initiative
The Aluminium Stewardship Initiative (ASI) was launched in 2012 to foster greater sustainability and transparency throughout the aluminium industry. Supported by key industry players, ASI is working with a broad base of stakeholders to assess industry-specific sustainability challenges, opportunities and needs. Dr Fiona Solomon is the Executive Director of the Aluminium Stewardship Initiative (ASI). Throughout her career, she has been involved in developing new and innovative initiatives along the mineral supply chains. Dr Solomon shares with AlCircle her inputs on the sustainability challenges faced by the aluminium industry and how ASI activities aim to address the issue globally. Excerpts from the interview: AlCircle: In your view, how relevant is the concept of sustainability for the...
Rusal sees 12.5 mln tonne global alumina capacity closing in 2016
Rusal expects 12.5 million tonnes of alumina capacity to be closed worldwide this year, an executive from Rusal was reported saying in a recent interview. Rusal's own modernization program, however, will increase its alumina capacity by about 430,000 tonnes when it is complete by May or June, Yakov Itskov, director of Rusal’s alumina division, the executive was quoted as saying.
Microsoft Lumia 650 with aluminium frame to debut in "select" European markets
Nokia and then Microsoft’s Lumia has so far been banking heavily on their low-end, low-cost devices to woo the mobile handset market. And while these devices often offered decent hardware and software specifications, they never shined in the design department. With its latest launch- Microsoft Lumia 650, the brand has finally come of age in terms of high-end designing. The 5-inch mobile handset now wears a “highly polished, diamond cut and anodized aluminium frame. Slated to go on sale in “select” European markets on Thursday, February 18, at “around” $199 before taxes and subsidies, the aluminium-frame Microsoft Lumia 650 scales at only 122 grams while measuring 6.9mm in depth. The age of awkwardly bulky Windows phones seems to be over, although obviously, Redmond’s “attention to every...
Nanshan Aluminum eyeing high-end aluminium applications
Shandong Nanshan Aluminum, a large Chinese vertically integrated aluminium processor, is aiming to become one of the global top ten aerospace aluminium materials suppliers, China Securities reported. The company had strategic cooperation with famous aircraft manufacturers, like Boeing and Airbus in 2015. Its aerospace materials industrial park has fully entered operations. The park features medium-thick plate, extruded products and forging products. Nanshan Aluminum will step up supply of mid- and high-end products, Chairman Cheng Rence said. Aluminium consumption in China’s rail transportation sector is expected to reach 220,000 tonnes in 2016. Nanshan Aluminum is developing aluminium alloy sheet used in high-speed trains. It is also developing automotive aluminum sheet, forgings and...
India aluminium scrap prices remain flat; MCX aluminium settles slightly up
India major aluminium scrap commodities prices remained flat on Friday last week, while aluminium futures prices at Multi Commodity Exchange (MCX) settled slightly higher boosted by the expectations of dovish comments from a senior U.S. Federal Reserve official but gains were limited by the continuing concerns for the global economy. The major aluminium scrap commodities dropped on Scrap Register Price Index as on Friday. India's major scrap commodities like aluminium accessories scrap, aluminium ingots, aluminium rod company, aluminium rod local, aluminium sheet cutting, aluminium utensil scrap and aluminium wire scrap were remained flat on Friday. The most active February aluminium contract on Multi Commodity Exchange settled slightly up by 0.50% to INR 102.60 per kilogram on Friday...
