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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L&T may get nod from Odisha to set up 3 mtpa aluminium plant
Engineering major Larsen and Toubro (L&T) said it is likely to get the final clearance from the Odisha government for setting up a 3 million tonnes per annum (mtpa) aluminium plant in Rayagada district in the next 2-3 months. The company is planning to set up a 3 mtpa green field integrated aluminium plant in the state with an estimated investment of INR 12,000 crore. "We had submitted the proposal to the (Odisha) government and we hope we will get the last mile clearance from it in the next 2-3 months," company's senior executive vice-president (power, minerals and metals) Shailendra Roy, told PTI on the sidelines of the Make in India (MII) Week. He further said once the final approval is in place the company will start with the process of land acquisition, designing. "We will start the...
NAPCO signed in as official aluminium extruder for Oman project
National Aluminium Products Company SAOG (NAPCO) has entered into a partnership with Profils Systemes Gulf FZCO for Saraya Bandar Jissah project in Oman. Under the terms of the agreement, NAPCO will be the official aluminium extruder for doors and windows for the luxury beachfront development. The mixed-use project, located on the natural Bandar Jissah beach, features upscale villas, hotels, a spa, a heritage village built around an archaeological site, a recreational centre with restaurants, retail outlets, social club and sports amenities. Robert Holtkamp, CEO, NAPCO, said: "In a landmark deal, Profils Systemes has sub-contracted us to be the aluminium extruder for the Saraya Bandar Jissah development in Oman.
Aluminium rises by 0.4% on rising demand
Aluminium prices were up by 0.39% to INR 103.20 per kg in futures trade as traders enlarged positions, driven by pick up in demand at the spot market amid firm global trend. At the Multi Commodity Exchange, aluminium for delivery in March month moved up by 40 paise, or 0.39% to INR 103.20 per kg in business turnover of 10 lots. Likewise, the metal for delivery in February contracts edged up by 30 paise or 0.29% to INR 102.40 per kg in 92 lots. Analysts said increasing of positions by participants due to pick up in demand from consuming industries at domestic spot markets and a firm global trend mainly led to rise in aluminium prices at futures trade. Meanwhile, aluminum gained 0.3% at the London Metal Exchange.
EGA aims to increase UAE national workforce
Emirates Global Aluminium ("EGA"), one of the five largest primary aluminium producers in the world, participated at the 2016 Tawdheef career fair from 1 to 3 February at ADNEC in Abu Dhabi, using the event as a platform for recruiting Emirati talent - an integral component of its Emiratization strategy. During the event, representatives of the UAE's industrial flagship met with prospective candidates and shared insights into the employment, work placement and training opportunities available to UAE Nationals. "EGA is one of the largest organisations in the UAE and we support Emiratization in all aspects. We currently employ 1,200 UAE Nationals, a figure we are looking to expand in the coming year," said Ahmed Al Shamsi (Executive Vice President, Human Capital: EGA). "Tawdheef provided a...
Automotive demand growth for metals likely to slow down
After news of Toyota’s recent supply chain troubles, so ably covered by my colleague Lisa Reisman last week, news from the US car industry, by contrast, couldn’t be better. General Motors reported $9.7 billion net income for 2015 as it was bolstered by buoyant US light-truck sales. Results for the fourth quarter more than tripled from $1.99 billion to $6.27 billion although, admittedly, benefiting from $4 billion in favorable special items. Even so, the underlying figures were also boosted by the strong sales for the core North American operations, where earnings before interest and tax adjusted for special items rose 25% to $2.77 billion, on revenue up 9.5% to $27.7 billion. The company said low fuel prices boosted sales of more profitable pickup trucks and sport-utility vehicles. Sales...
Accuride introduces new lightweight aluminum wheels
Accuride Corp. has announced that it has added two new lightweight aluminum wheels to its product offering. Re-engineered to reduce weight by 5-7%, the new aluminum wheels are both standard type 22.5 x 9.0 wheels produced at the company’s aluminum wheel production facility in Erie, Pa., according to Accuride. The new wheels will be available starting in March. Specifications for the new wheels are as follows: • 41730 wheel: replaces previous part number 29730 and features a reduced weight of four lbs. (total weight per wheel: 58 lbs.). • 41012 wheel: replaces previous part number 40012 and features a reduced weight of three lbs. (total weight per wheel: 51 lbs.). “As our customers seek to optimize the total weight, fuel economy and emissions of their equipment, we continue to refine our...
Proposed aluminum plant's status unclear
City officials say they have not heard from the president of the Mojave Aluminum Company since September. Shen proposed almost a year ago to build a $120 million, 500,000-square-foot aluminum remelt and casting house plant in Lenwood. Shen said the plant would employ up to 450 people. The plant was a scaled-down version of one the City Council approved in March 2014. That $1.5 billion, 3 million-square-foot aluminum manufacturing complex also was proposed for the Lenwood area on property that was once Sun & Sky golf Course. It was projected to employ 2,000 workers until Shen pulled the plug on it, blaming the high cost of electricity in California for its downfall. City officials said an Environmental Impact Report on the smaller project was expected to be released in November. City...
National Aluminium Q3 net profit at INR 133.5 crore
National Aluminium Company Ltd posted a net profit of INR 1334.90 mn for the quarter ended December 31, 2015 as compared to INR 3544.70 mn for the quarter ended December 31, 2014. Total Income has decreased from INR 20576.10 mn for the quarter ended December 31, 2014 to INR 17592.80 million for the quarter ended December 31, 2015. National Aluminium Company Ltd ended at INR 32.5, down by INR 1.25 or 3.7% from its previous closing of INR 33.75 on the BSE. The scrip opened at INR 33.65 and touched a high and low of INR 34.6 and INR 31.75 respectively. A total of 605316(NSE+BSE) shares were traded on the counter. The current market cap of the company is INR 8698.19 crore. The BSE group 'A' stock of face value INR 5 touched a 52 week high of INR 52.8 on 11-Feb-2015 and a 52 week low of INR 28...
Rusal eyes further aluminium production cuts
Russian aluminium producer Rusal said it is considering further production cuts and won’t restart idled smelters, as prices for the lightweight metal trade close to their lowest levels since 2009. The company, controlled by Oleg Deripaska, said it would consider cuts of around 200,000 tonnes per year, writes Henry Sanderson, Commodities Correspondent. The global aluminium market is suffering from a glut of the metal from China, which rapidly built out its production over the last decade. China is likely to add an extra 3m tonnes of new capacity this year and close around 1.5m tonnes, Rusal said. That is a slower growth rate than the last five years, it said. Along with closures outside China Rusal said it expects a 1.2m tonnes market deficit in 2016 compared to a slight surplus last year....
AluSolutions to host speakers from Rio Tinto, Norsk Hydro and Schüco
AluSolutions 2016, the only free exhibition and conference addressing sustainability challenges in aluminium production and processing, is excited to announce confirmed speakers from Rio Tinto, Norsk Hydro and Schüco. Taking place on 10th - 11th May 2016 at the Abu Dhabi National Exhibition Centre, the AluSolutions conference will demonstrate how the aluminium industry is making continuous improvements in the environmental efficiency of producing aluminium, as well as its sustainability benefits in end-use applications. The second day of the conference (11th May) will host Dr Fiona Solomon, Aluminium Stewardship Initiative (ASI) Director, as keynote speaker. Dr Solomon brings nearly 20 years of experience in sustainability and corporate social responsibility to her role at the ASI and...
Novelis Works with Jaguar Land Rover to Create RC5754 High Recycled Content Aluminum Alloy for Automotive Industry
Novelis, the world leader in aluminum rolling and recycling, today announced that its RC5754 alloy, a new automotive product designed to contain up to 75 percent recycled content, has been successfully integrated into the structural components of high volume production passenger vehicles. RC5754 was developed with Jaguar Land Rover and serves as a key component of Jaguar's REALCAR (Recycled ALuminum CAR) project. First introduced in the new Jaguar XE, the RC5754 alloy will also be featured in all new and legacy Jaguar Land Rover models. Learnings from the collaboration of Novelis and Jaguar Land Rover in developing this new product are documented in "Collaboration for a Closed-Loop Value Chain," a case study issued in January following the companies' participation in the University of...
Orbite back on track with plant commissioning after resolving supplier dispute
The list of items to be done before full commissioning of Quebec-based clean-tech firm Orbite Technologies’ new commercial-scale high-purity alumina (HPA) plant can stat has become short and straightforward, chief executive Glenn Kelly said on Thursday, after the company managed to resolve a supplier issue that had held progress back at the project. A dispute with one of its suppliers resulted in a delay in equipment delivery and installation, however, the company advised that after settling the dispute, the withheld parts were delivered and work on installing the calcination system restarted early in January. The project was now back on the correct construction sequence and was progressing according to plan, with installation of all major mechanical equipment, including the calciner and...
Rusal’s Bauxite production down QoQ due to severe weather conditions
UC RUSAL, a leading global aluminium producer, announces its operating results for the fourth quarter 2015 (“4Q15”) and full year 2015 (“12M15”). During the fourth quarter of 2015, bauxite and nepheline ores production totalled 2,850 thousand tonnes (-13.4% QoQ) and 952 thousand tonnes (-9.6% QoQ), respectively. Bauxite production volumes decline was largely attributable to seasonal factors in Russia where volumes were down QoQ due to weather conditions. In advance of the winter season, inventories were built in 3Q15 to keep supplies stable at Group aluminium smelters. International assets bauxite production totalled 1,713 thousand tonnes (-1.4% QoQ). Output at Windalco and Bauxite Company of Guyana were lower QoQ due to seasonal planned repairs and destocking. For the full year 2015,...
Paulwell: Noranda bankruptcy filing has nothing to do with bauxite levy row
Minister in charge of mining, Phillip Paulwell, has dismissed speculation that the bankruptcy filing by Noranda Bauxite’s parent company in the United States is in any way related to the recent arbitration ruling in favour of the Jamaican Government’s right to be paid the full bauxite levy that the company owes. Paulwell, in a release late Tuesday, pointed out that Noranda has been facing challenges with its upstream and downstream operations for some time. “The bauxite levy is minuscule compared to the external liabilities of the company, its refining operations, as well as depressed market demand,” he argued. The Jamaican Government owns roughly half of the assets of Noranda Jamaica Bauxite Partners, which is managed and operated by Noranda Bauxite Limited, a subsidiary of parent...
MCX aluminium up by 0.1% on spot demand
Aluminium prices were up by 0.10 per cent to INR 101.30 per kg in futures trading as traders created fresh positions after pick up in demand at the spot market. At Multi Commodity Exchange, aluminium for delivery in February inched up by 10 paise, or 0.10%, to INR 101.30 per kg, in a business turnover of 313 lots. On similar lines, the metal for delivery in far-month March edged up by a similar margin to INR 102.10 per kg in four lots. Market analysts said fresh positions built up by traders on the back of pick up in demand from consuming industries at domestic spot markets, mainly helped aluminium prices to trade higher at futures trade.
Indian govt actively considering aluminium industry's wish to raise import duty
Government of India finally seems to be waking up to the crisis situation which domestic aluminium industry is going through. Union Minister for Steel and Mines, Narendra Singh Tomar said, "Dumping by China is a big reason. They are selling for lower than their production cost. It may be their strategy but it is damaging us." The government has increased the import duty on steel on more than one occasion. It also imposed anti-dumping and safeguard duties. The odds are that more action is in the offing to shelter the metal producers, Tomar said. The aluminium industry is currently reeling under not just cheap imports but also rising costs, largely due to higher taxes on coal, and a steep decline in aluminium prices. India consumes around 3.5 million tonnes aluminium every year, of which...
Hindalco Q3 profit plunges nearly 89% on sharp fall in metal prices
Aditya Birla Group firm Hindalco Industries on Tuesday reported 88.74 per cent plunge in standalone net profit to INR 40.46 crore for the quarter ended December 31, 2015, due to a sharp fall in metal prices. The company had reported a standalone net profit of INR 359 crore in the corresponding quarter of last fiscal, the company said in a regulatory filing to the BSE. Its total income from operations declined to INR 8,150.27 crore during the quarter under review from INR 8,603.03 crore in the year-ago period. Total expenses declined to INR 7,786.65 crore during the third quarter (Q3) as against INR 7,895.96 crore in the year-ago quarter. Operating results for the quarter were severely impacted by the sharp drop in London Metal Exchange prices and regional aluminium premium, the...
UC RUSAL announces Q4 and full year 2015 operating results
Leading, global aluminium producer UC RUSAL announced yesterday its fourth quarter and full year 2015 operating results. Aluminium production in Q4 2015 totalled 878 thousand tonnes, down 4.0 per cent Q-o-Q, remaining flat on the Y-o-Y basis. Q4 2015 aluminium sales totalled 876 thousand tonnes down 6.7 per cent Q-o-Q. RUSAL attributed the reduction in sales to a relatively high level of Q3 2015 sales on export and domestic markets and a marginal increase of inventories (goods in transit) in 4Q15 to be distributed 1Q16. The share of Value Added Products (VAP) in the overall aluminium sales portfolio in the fourth quarter was 44 per cent. Q4 2015 realised price decreased by 6.2 per cent Q-o-Q to USD1,729 per tonne reflecting the general downward trend of London Metal Exchange (“LME”)...
