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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Romania's Alro Slatina borrows USD 60 mln to fund investments this year
Alro Slatina, one of Romania's biggest aluminium producers has inked an agreement with the Black Sea Trade and Development Bank to borrow a sum of USD 60 million. The primary aluminium maker will use the funds to carry out investments this year, the company announced. The loan has a seven-year maturity and will be repaid in equal half-yearly installments, disclosed company sources. Alro's investment plans this year include increasing operational efficiency while reducing energy dependency. The Black Sea Trade and Development Bank is a development bank that serves the eleven countries that are members of the Organization of the Black Sea Economic Cooperation. It includes Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. Alro is part of...
Hydro - Sapa JV : Announcement of results for Q4 2015
Aluminium major Norsk Hydro announced the fourth quarter 2015 results of its joint venture with Sapa. Compared to the previous quarter, underlying EBIT for Sapa declined mainly due to seasonally lower demand. Underlying EBIT for Sapa increased compared to the same quarter of the previous year mainly due to the effects of the improvement programs, continued growth in North American demand and increased added value operations. Underlying EBIT for the fourth quarter was negatively affected by Sapa's measures to address, and consequences of, unsanctioned quality testing practices in North America. The restructuring program initiated in 2013, targeting annual synergies of around NOK one billion by the end of 2016, reached its target in 2015, one year ahead of time. In addition to the factors...
Novelis: results show 'less favourable recycling benefits'
Excluding special items, aluminium rolling and recycling specialist Novelis reported a net income of US$ 32 million in the third quarter of its current fiscal year compared to US$ 54 million in the previous third quarter. A 4% increase in adjusted EBITDA from US$ 228 million to US$ 238 million 'was driven by higher shipments of automotive and beverage can sheet' but 'partially offset by less favourable recycling benefits due to depressed aluminium prices as compared to the prior year'. Latest results also reflect 'higher fixed costs associated with new automotive and recycling operations'. Novelis' shipments of rolled aluminium products climbed 3 per cent to 779 000 tonnes in the quarter under review but revenues fell 17 per cent to US$ 2.4 billion, largely as a result of 'significantly...
Rusal to boost alumina capacity despite global surplus
Russian aluminium giant Rusal is taking advantage of a slide in the country's currency to boost its alumina production capacity despite a global surplus of the material, an executive said on Wednesday. Ramping up production would allow the company to take advantage of higher margins offered by the currency differential, as their costs are in the weaker rouble, while export sales are made in dollars. Rusal expects to add about 430,000 tonnes to its capacity of alumina, an intermediate raw material to make aluminium, through a $34.5 million modernisation programme due to complete in May or June, said Yakov Itskov, director of the alumina division. Itskov, who did not provide a figure for Rusal's total alumina production capacity, said a slide in the rouble has cut the dollar-denominated...
Rexam teams up with Swedish brewer on craft IPA cans
Can maker Rexam has joined forces with Swedish craft beer maker Southside Brewing Company to produce its first ever canned line of Western Pacific IPA. The move from glass bottle to aluminium highlights the brewer’s dedication to sustainability and will enable it to recycle more, waste less and lower its carbon footprint. The 330ml cans, manufactured by Rexam at its plant in Malmö, will be available from this month in select regions and retail channels throughout Sweden, including Systembolaget. The permanent design, crafted straight onto can by Rexam design experts, showcases the Western Pacific brand’s Californian heritage; it uses unique brewing techniques and ingredients imported from the west coast of the US. Speaking about the partnership, Southside Brewing Company Tommy Eriksson...
Nalco Chairman TK Chand suggests use of aluminium for building smart cities
National Aluminium Company (Nalco) Chairman and Managing Director Tapan Kumar Chand in his book ‘Aluminium: the strategic metal’ has called for extensive use of the light metal for building smart cities in India. Mr. Chand recently presented a copy of his newly published book to Prime Minister Narendra Modi at Raj Bhavan, Bhubaneswar. There he said addressing the audience that aluminium was useful for strategic use to give a push to green movement reducing carbon footprint. He said aluminium was useful in the making of wagons to increase haulage capacity by three times, food, beverage and packaging sector, electrical and electronics and transport in making smart cities.
Singapore firm to build carbon-fibre aluminium e-supercar
A Singapore SME is teaming up with an F1 engineering giant to make a carbon-fibre aluminium electric supercar called Dendrobium. With an initial investment of $10 million over the first two years, Vanda Electrics - a unit of family- owned Wong Fong Engineering Works - expects the two-door, two-seater hard-top named after an orchid to be ready for next year's Geneva Motor Show. Wong Fong says Vanda Electrics has already secured funding from Titan Capital, a United States-based lender. The $10 million will just be to get the first unit of the carbon-fibre aluminium car ready for the show, which will be held in March next year. Should production commence, "We know it will be in the excess of $150 million for land, factory, equipment and manpower", a Wong Fong spokesman says. "We are prepared...
Prime Minister of the Kingdom of Bahrain visits Alba stand at the GIF 2016
His Royal Highness the Prime Minister of the Kingdom of Bahrain, Prince Khalifa bin Salman Al Khalifa honoured Aluminium Bahrain B.S.C. (Alba) by visiting the company’s exhibition stand on February 09, 2016 at the Gulf Industry Fair (GIF) 2016. GIF 2016, which is being held under the patronage of His Royal Highness the Prime Minister of the Kingdom of Bahrain, Prince Khalifa bin Salman Al Khalifa from February 9 – 11, 2015 at Bahrain International Exhibition and Convention Centre, Kingdom of Bahrain, was inaugurated by HRH this morning. HRH the Premier, accompanied by VIP guests and dignitaries, was welcomed by Alba’s Chairman of Board of Directors, Shaikh Daij bin Salman bin Daij Al Khalifa and the Executive Management at the Alba stand. Shaikh Daij presented HRH the Premier with a model...
Indian govt should take measures to curb Chinese aluminium imports: MD, Hindalco Industies
Debnarayan Bhattacharya, managing director at Aditya Birla Group company Hindalco Industries, sounded genuinely concerned about Indian government's role in reducing the worries of the domestic aluminium industry players who are badly hit by Chinese imports and aluminium price freefall. In a recent interview with a leading news daily, Bhattacharya said, "There are almost 750,000 people who are directly or indirectly engaged in the aluminium industry in the domestic market. So, it is important that the government takes some measures to curb Chinese imports in the national interest." Coming from someone who is steering the company at a very difficult time, this certainly stands as a view that every aluminium producer in the country would agree upon. The Aluminium Association of India has,...
ISRI invites application for its 2016 Circle of Safety Excellence
The Institute of Scrap Recycling Industries (ISRI), the Voice of the Recycling Industry, which includes the growing aluminium recycling industry as well, has announced that the 2016 application period for the Circle of Safety ExcellenceTM is currently open. The Circle of Safety Excellence, a member-driven effort to promote and encourage safety in the workplace, brings like-minded companies together to share safety data and best practices for the betterment of their own safety program and the industry in general. “Safety is a core value of the recycling industry,” said Terry Cirone, vice president of safety for ISRI. “The Circle of Safety Excellence shows that ISRI shares a commitment with our members to do all we can for the betterment of safety in the industry.” Companies interested in...
Novelis reports strong Q3 2016 results on record automotive shipments
Novelis, the world leader in aluminium rolling and recycling, yesterday reported net income of $6 million for the third quarter of fiscal year 2016. Excluding tax-effected special items, the company reported net income of $32 million in the third quarter of fiscal 2016 compared to $54 million in the third quarter of fiscal 2015. Excluding the impact of metal price lag in both quarters, Adjusted EBITDA was $238 million in the third quarter of fiscal 2016, up four percent compared to $228 million in the prior year. The increase was driven by higher shipments of automotive and beverage can sheet, partially offset by less favorable recycling benefits due to depressed aluminium prices as compared to the prior year. Current year results also reflect higher fixed costs associated with new...
4th Iran International Aluminium Conference and Exhibition ropes in global sponsors
As one of the important Aluminium producers in the Persian Gulf region and pioneer in this industry, Iran is considered a strategic point for production. With this goal in mind, The 4th Iran International Aluminium Conference and Exhibition will be a turning point in upgrading Aluminium knowledge. As part of this act Dr. Mehdi Karbassian Deputy Minister & Chairman of the board of IMIDRO (Iranian Mines and Mining Industries Development and Renovation Organization) will act as keynote speaker in this conference. With the growing focus and attention towards this conference, Danieli from Italy has chosen to be a Golden Sponsor and Fives from France a sponsor in the upcoming event, up to now. Plus, there are great speculations that Rusal from Russia and NFC from China will chose to become...
Aluminium price declines likely to extend through 2016
According to a leading investment banking, securities and investment management firm, aluminium prices may fall more than 10 per cent by year’s end amid ongoing weakness in Chinese demand that is unlikely to show any recovery in 2016. The firm cut its aluminium forecast to $1 350 a ton from $1 550 a ton. The analysts at the firm wrote, “We now anticipate no material recovery in Chinese metals demand growth in 2016.” China’s transition from metals-intensive, investment-led growth “is likely to be permanent,” they said, while also citing an overhang of property inventory and the country’s high debt levels as challenging for demand in the world’s top commodities consuming nation. The slowest economic expansion in China in a generation has led to the oversupply of metals and sent aluminium...
MCX aluminium up by 0.5% on global cues
Aluminium prices inched up by 0.54 per cent to INR 103.10 per kg in the futures trade today as participants built up fresh positions, tracking a firm trend overseas. Furthermore, strong demand in the spot markets supported the upside. At the Multi Commodity Exchange, aluminium for delivery in February month traded higher by 55 paise, or 0.54 per cent to INR 103.10 per kg in business turnover of 475 lots. Similarly, the metal for delivery in far-month March contracts edged up by 50 paise, or 0.48 per cent to INR 104 per kg in 13 lots. Marketmen said apart from a firm trend in base metals pack at the London Metal Exchange, increased demand from consuming industries at domestic spot market kept zinc prices higher at futures trade. Meanwhile, aluminium has inched up 0.5 per cent at the London...
Noranda receives court approval of "First Day" motions to support business operations
Noranda Aluminum Holding Corporation announced that the company has received approval from the United States Bankruptcy Court for the Eastern District of Missouri for its First Day motions related to its Chapter 11 restructuring. Collectively, the First Day orders issued by the Court on either an interim or final basis will help Noranda continue to operate its business in the ordinary course while the company evaluates options for its various business operations. Kip Smith, Noranda's President and Chief Executive Officer, said, "The Court's approval of our DIP financing and other first-day motions should provide our customers, suppliers, and employees confidence in our ability to conduct this process without disruption to our ongoing business activities." The Court granted Noranda interim...
Report on Bua bauxite mining presented in Parliament
A parliamentary report of the Standing Committee on Natural Resources has concluded that landowners of Nawailevu in Bua have received the full payment and fair share of royalties for the mining of the bauxite in their area. These landowners had claimed in a petition presented to parliament last year that they were not receiving full payments. The bauxite mining license in Nawailevu, Bua was awarded to Aurum Exploration Fiji Limited. Chairman of the Standing Committee on Natural Resources, Joeli Cawaki told parliament that a future generation fund of $600,000 has been paid to the landowners. Cawaki says it is the fair share of royalties formula that is yet to be finalised by the Ministry of Lands and Mineral Resources. The report has been tabled in parliament and will be debated at a later...
Sluggish bauxite demand drags GMDC profits down 40% in Dec 2015 quarter
The Indian government-owned mineral exploration and development company has reported weaker year-on-year results for the final three months of last year as the Gujarat-based miner succumbed to slowing demand and weakening commodity prices. Gujarat Mineral Development Corporation Ltd. (GMDC) has recorded a 40 per cent drop in net profit for the three months ending 31 December 2015, the third quarter of the Indian fiscal year, with the company’s total income falling by 16 per cent over the same period. The company attributes this decline in profit and total income to sluggish demand for commodities such as fluorspar and bauxite. The whole of mining and commodities market has been experiencing a freefall which has taken a serious toll on the respective value chains across economies, barring...
Fresh selling seen in aluminium, open interest up by 12.75%
Aluminium settled down -2.06% at 102.3 as investors squared positions ahead of the Lunar New Year holiday in China. Financial speculators in metal such as hedge funds have been strongly bearish on the market since early November, amid signs of weakening economic growth around the world. The U.S. Department of Labor said nonfarm payrolls increased by 151,000 in January, falling considerably from a downwardly revised 262,000 in December. The sharp declines were blamed in large part to unseasonably warm temperatures over the previous month, which created an unanticipated demand for labor in the construction industry. China imported 4,500 mt of primary aluminum in December 2015, down from 11,700 mt in November, Customs data showed. Some Chinese aluminum processors said orders under tolling...
