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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Alumina price to drop 18% in 2016
Gladstone alumina refineries QAL and Yarwun are expected to refine more product this year despite low prices and an already over-supplied market. According to the Resources and Energy Outlook report from Department of Industry, Innovation and Science too much alumina in the market in 2015 pushed the price down by 8 per cent and in 2016 it is forecast to decrease by 18 per cent. It will put pressure on Gladstone's refineries. China was expected to continue to increase production of alumina in 2016 as new and suspended refineries start producing more. But, the report stated, QAL and Yarwun would drive an increase in Australian production. The low Australia dollar is expected to help exports as the overseas buyers can buy it for cheaper. Rio Tinto expects poor quality bauxite in China to...
Workers at QAL's Barney Point refinery axed as alumina price hits 25-year low
The critically low alumina price in the interational market has forced Queensland Alumina Limited to axe workers from its Barney Point refinery. The company did not disclose the number of people made redundant, but did say they were in 'support' roles. "As a result of significant pressure on the aluminium industry we are working to reduce costs to make QAL more competitive," said QAL general manager Mike Dunstan. "QAL has been through these cycles before, and there are times when it does get really rough but but this is the roughest we've seen," Mr Dunstan added. The price of aluminium is at its lowest price in 25 years, now at about US$205 per tonne, down from the consistent average in recent years of US$330 per tonne. QAL Management said the changes would eventually make the refinery,...
Nalco to invest INR 20,550 cr for expansion of alumina refinery
Odisha-based Navratna PSE Nalco has announced investment of INR 20,550 crore for expansion of its alumina refinery at Damanjodi and setting up an aluminium park at Angul in the state. "Since the entire value chain of Nalco, starting from bauxite mining to aluminium making is based in Odisha, our major focus is to strengthen the investment climate of the state thereby boosting Odisha's industrial upsurge," said T K Chand, CMD, Navratna PSE Nalco. Claiming that Nalco played a major role in Odisha Investors' Meet at Make in India Week in Mumbai, the aluminium major said it was committed for boosting industrialisation in the state. Addressing representatives of different industries, entrepreneurs, bureaucrats, delegates from within and outside the country at the investors' meet yesterday,...
Pahang govt steps up efforts on bauxite de-stocking and transport
Government of Malaysia is keeping tabs on the limit of bauxite stored at the Kuantan Port to avoid any additional amount of stockpile in the area. Transport Minister Datuk Seri Liow Tiong Lai said they have not received any report of more bauxite there than the stockpile limit. “We will not allow any additional stockpile and we will monitor it closely,” he said recently after attending the Bentong MCA Chinese New Year Open House. It has been reported that only Pakamatic (Paka) type of lorries, or municipal rubbish compactor lorries, may be used to carry bauxite ore after April when the three-month moratorium on bauxite mining ends. Liow Tiong Lai said the rule was one of the bauxite transport guidelines by the ministry in order to avoid pollution problems from spillage. “We have already...
Argentina may launch anti-dumping probe into Chinese aluminium alloy wheel rim
Argentina informed China’s Ministry of Commerce on February 4 that it has received written application from its domestic industry requesting anti-dumping investigation into certain aluminium alloy wheel rims originated from China. The aluminium alloy wheel rims that Argentina’s domestic industry requested to be investigated are those whose diameters are at or greater than 14 inches but no greater than 18 inches.
Desalitech reverse osmosis to help Chinese aluminium manufacturer achieve ZLD
Aluminium company Novelis has awarded Desalitech a contract to supply a high efficiency ultrapure water treatment system for a production facility in Changzhou, China. The Changzhou plant is Novelis’ first aluminum automotive sheet manufacturing facility in China with a set requirement for a new zero liquid discharge (ZLD) wastewater treatment installation. The Novelis facility provides customers in China and abroad with automotive sheet for use in lightweight structures and body panels. Water is used in multiple processes throughout the manufacturing plant, producing wastewater streams that are collected and treated with biological, chemical and membrane filtration followed by reverse osmosis. The supplies system is designed to help Novelis comply with a local ordinance requiring...
Nalco registers INR 133 crore profit in Q3 2015
The National Aluminium Company Limited (Nalco) has achieved a net profit of INR 133 crore in the third quarter that ended on December 2015 despite global slowdown in the aluminium sector, a release issued by the Navratna company on Friday stated. The aluminium major has achieved a net profit of INR 226 crore in the second quarter and INR 354 crore during the corresponding quarter of the previous fiscal. The net sales turnover in the third quarter was INR 1,616 crore, stated the release. The net profit for the nine months that ended on December 2015 was INR 523 crore, against the corresponding figure of INR 967 crore for the previous fiscal. The net sales for the nine months of the fiscal was INR 4,866 crore as compared to INR 5,483 crore the corresponding period of the last fiscal. The...
Asia Alumina: Australia up $1 on week at $209/Mt FOB
Platts Australian alumina daily assessment closed the week at $209/mt FOB, up 50 cents on the day as the global market gravitated toward a more balanced or tighter position than a few months ago due to margins-led global refining cuts. The Australian assessment rose $1/mt on the week. Low freight rates have also helped to support the FOB alumina price. India’s Nalco awarded to Minmetals at $210.59/mt FOB Visakhapatnam a sell tender on February 3, market participants said. The tender closed on February 2 and called for a 30,000 mt lot to be shipped between February 15 and 20. On Thursday, Nalco floated a new sell tender for another 30,000 mt for shipment between March 10 and 14 from Visakhapatnam. The tender closes February 16, with bids to be valid up to February 18. In the last three...
Rusal to sell Alpart bauxite-alumina plant to Chinese company
Owners of UC Rusal have signed an agreement with a Chinese firm for the purchase of Alumina Partners of Jamaica (ALPART), a bauxite mining and alumina processing plant located at Nain, St Elizabeth, in the south of Jamaica. Reliable sources said on Thursday that – in a process likely to be concluded by the third quarter of 2016 – the price had been agreed on and that the Chinese company will now enter into its due diligence phase before the financial close later this year. The source said that full-scale reopening of the plant would mean employment and inflows from the bauxite levy. No development plans were mentioned at this stage. Other sources have named the Chinese company as Jiuquan Iron & Steel (Group) Co Ltd (JISCO) - a producer of carbon steel, stainless & special steel and...
Emirates Global Aluminium set for Dubai summit
Emirates Global Aluminium (EGA) is all set to highligh its corporate commitment to integrity and transparency at the conference of Association of Certified Fraud Examiners Middle East in Dubai, UAE. A joint venture between Abu Dhabi-based Mubadala Development Company and the Investment Corporation of Dubai, EGA is platinum sponsor at the two-day event which kicked off on February 14. The summit is being organised in association with the Financial Audit Department (FAD) of Dubai. Over 300 anti-fraud professionals from around the world - including employees from EGA - will gather at the 2016 ACFE Middle East Fraud Conference to discuss the latest trends and strategies in fraud prevention. The delegates will also have the opportunity to meet high-ranking and reputable speakers from leading...
Sumitomo says Japan's Q2 aluminium premiums to hit $120-$130
Japan's aluminium premiums will likely rise to $120-$130 per tonne over April-June from the current quarter's $110 per tonne as falling imports are trimming local inventories, Japanese trading house Sumitomo Corp said on Friday. Japan is Asia's top aluminium importer and the premiums it agrees to pay each quarter over the London Metal Exchange (LME) cash price for primary metal shipments PREM-ALUM-JP set the benchmark for the region. The premiums for January-March shipments are up 22 percent from the last quarter of 2015 on higher overseas rates and shrinking inventory at home. "Aluminium imports will drop further as Japanese trading houses and end-users want to cut their stocks by the end of their business year in March," Shingi Yamagiwa, manager of Sumitomo light metals trading team,...
Rio tipped for alumina takeover
Some of the world’s biggest miners are believed to be positioning themselves for transformational takeover deals, with speculation mounting that Rio Tinto could be circling Alcoa’s $5 billion alumina business and that the coal giant Glencore is poised to buy the struggling Western Australia miner Atlas Iron. Many view Rio Tinto’s move last week to come clean early about its plan to cut dividends as interesting. One theory is that it will be followed by a play for Alcoa’s alumina operation following news of a decision by the company to split its upstream and downstream assets into separate entities. Rio, which is mulling a move to introduce a Chinese partner to help fund its $US1.9bn Amrun bauxite project on Cape York, is the only diversified player in alumina. Alcoa’s alumina upstream...
Rio considering Chinese JV partner for Amrun bauxite mine expansion
Profit or no profit, mining giant Rio Tinto remains committed to the $2.6 billion Amrun bauxite mine expansion near Weipa. And for that, the conglomerate is considering a joint venture partner that would help it fund the wholly owned project. It is known from the company sources that construction work at the site has already started. It will provide around average 600 jobs over three years, peaking at 1100. Rio’s profits have been falling 51 per cent to $6.3 billion and accessing capital for major investments has been becoming tougher of late. Nevertheless, the company wants to go ahead with the extension. Rio chief executive Sam Walsh said Chinese investment in Amrun was under consideration. It was most likely to be state-owned Chinalco, Rio Tinto’s biggest shareholder with a 9.9 per...
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...
