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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Pacific Aluminium sackings spark new maritime row
The political fight over the government’s coastal shipping rules has deepened with the maritime union protesting against Pacific Aluminium’s decision to sack the 16 crew on one of its ships and use foreign workers on its Newcastle-Gladstone route. In a potential flashpoint likely to infuriate key Senate crossbenchers before parliament begins next week, the Maritime Union of Australia accused the Coalition of “giving the green light for another Aussie ship to leave the coast” after the government awarded a special licence to Pacific Aluminium to replace the Australian crew on CSL Melbourne. The situation mirrors a bitter two-month industrial stand-off over the MV Portland in Victoria that ended when the ship’s owner, Alcoa, forcibly removed the crew in a late-night raid. Pacific Aluminium...
Alcoa to appoint three new directors to its Board
Lightweight metals leader Alcoa Inc. has announced that it will appoint Ulrich “Rick” Schmidt, John C. Plant and Sean O. Mahoney to serve on the company’s Board of Directors, effective February 5, 2016. These appointments will further strengthen the company and add valuable aerospace and automotive experience to the Board as Alcoa prepares to separate into two independent companies in the second half of 2016. With these appointments, the Alcoa Board will be expanded to consist of 15 directors. “We are pleased to welcome Rick, John, and Sean to the Alcoa Board,” said Klaus Kleinfeld, Chairman and Chief Executive Officer. “As we prepare to separate into two strong companies, we have been actively working to ensure each has a world-class Board of Directors focused on creating shareholder...
About 51% of Chinese aluminium smelters bearish toward prices this week, SMM survey
About 51% of the 35 Chinese aluminium smelters surveyed by SMM see aluminium prices fall this week. These pessimists expect SHFE 1604 aluminium to fall below RMB 10,600/mt and LME aluminium to fall below USD 1,500/mt. First, spot discounts in domestic spot market have expanded, due to cooling downstream consumption as the holiday nears and stocks in trading markets are beginning to rise. Second, China’s manufacturing PMI remained negative in January. Third, short selling pressure remains strong at highs. Fourth, the US dollar index remains high. Another 35% see SHFE 1604 aluminium hovering around RMB 10,600/mt. Investors will be cautious about entering out of risk aversion ahead of the 2016 Chinese New Year holiday in early February. The rest 14% are bullish that LME aluminium will rise...
US purchased 758 million pounds of aluminum scrap during November 2015: USGS
According to aluminum recycling statistics published by the U.S. Geological Survey, Department of Interior; the U.S. aluminum industry purchased an estimated 758 million pounds of aluminum scrap during November 2015. This is a 1.1 percent down from the November 2014 total of 766 million. USGS estimates that recovery of aluminum and aluminum alloys totaled 652 million pounds, a decrease of 1.5 percent year-over-year. Through November, preliminary data indicate that recovery of aluminum from scrap totaled an estimated 7,602 million pounds, up 3.1 percent from the 2014 YTD total of 7,372 million. U.S. exports of scrap, not included in the government’s consumption statistics, totaled 3,195 million pounds YTD, down 9.5 percent from the same period in 2014.
Sapa strengthens communications team
Aluminium industry increases focus on branding and communication. In tandem with the industry trend, Sapa Group, the world's leading aluminium downstream products manufacturer, is strengthening its communications team. “As the world largest aluminium extrusion-based solutions company in the world, counting 100 production sites in more than 40 countries, and with 23,500 employees, we are a relatively unknown company. However we increasingly see the importance of building our brand and using communication as a driver for growth”, explains EVP Communication Erika Ahlqvist. I am therefore pleased to be able to strengthen our communication department with the appointment of Hilde Haugen Kallevig with her strong communication background and international experience. Hilde Haugen Kallevig is...
JVM Castings appoints new Group Sales Manager
Midlands-based JVM Castings has appointed a new Group Sales Manager to help the company meet growth targets over the next few years. Bob Freeman, who joined the team earlier this month, brings with him 32 years of experience in the castings and automotive industries, most recently with Sales & Purchase Management roles at King Automotive Systems Ltd and Sarginsons Industries Plc. Prior to that, Bob held a Supervisory MP&L role at Jaguar Cars’ Radford Plant in Coventry for almost a decade. His background in aluminium castings for the automotive, construction and civil engineering sectors made him a natural choice for JVM Castings, who in 2014 celebrated their 50 year relationship with Jaguar Land Rover as a Tier 1 supplier. As Group Sales Manager at JVM, Bob will be responsible for...
China aluminum semis exports to rise 14.4% y-o-y in 2016
China will export 14.4 per cent more aluminium semis in 20016 than the corresponding period previous year, after a spike in 2015, SMM expects. Intensified competition among domestic downstream market players will drive down processing fees for aluminium semis. This, along with improving product quality, will further strengthen competitiveness of Chinese aluminium semis in the international market, said an aluminium analyst from SMM. According to customs data, China’s aluminium semis exports declined to 370,000 tonnes in December 2015 from 397,400 tonnes in November. SMM attributes this decline to the rising SHFE/LME aluminium price ratio. In 2015, China exported 4.2 million tonnes of aluminium semis, of which, extrusion exports alone zoomed 39.1 per cent to 1.19 million tonnes;...
US shredded scrap prices stay flat; aluminium scrap prices show down trend
United States shredded scrap prices stayed flat during the week ended January 22, while major US aluminium scrap commodities weekly average prices on Scrap Register Price Index showed negative trend. According to TSI, US Midwest weekly shredded index remained flat during the week at $189 a long ton (delivered mill). Utilization rates at mills have continued to increase, and are now running near 70%, a positive sign for the sector. Mills are, however, still reluctant to buy new supplies, even with plenty of offers going around, due to inventories having been restocked in January. According to participants, inventories will begin to become quite low next week and hence buying will increase again, with supplies expected to be sucked in from the east coast. The weekly average scrap prices of...
Aluminium demand stable in North America despite the volatile market
Preliminary estimates indicate that aluminum demand in the United States and Canada (shipments by domestic producers plus imports) totaled an estimated 23,798 million pounds through November 2015, up nine-tenths of one percent over the same period last year. Demand for semi-fabricated (mill) products totaled 16,960 million pounds, up 4.2 percent. Apparent consumption (demand less exports) in domestic markets totaled an estimated 21,143 million pounds, increasing 4.3 percent year-todate. Aluminum net shipments (including exports) by domestic U.S. and Canadian facilities totaled an estimated 1,700 million pounds during December, down 2.8 percent from the December 2014 total of 1,749 million pounds. Shipments of aluminum mill products decreased 1.0 percent from the previous year to 1,142...
Vedanta to ramp up aluminium SEZ capacity from next fiscal
Buoyed by an order of the state power regulator here, diversified metals and mining major Vedanta Ltd is gearing up to ramp up capacity at its aluminium smelter SEZ (Special Economic Zone) at Jharsuguda from the next fiscal. "The state power regulator, OERC (Odisha Electricity Regulatory Commission), has allowed us to use three 600 Mw units (or 1800 Mw) from our own 2,400 Mw power station to run our smelter. The OERC order will facilitate us to expand our aluminium smelting capacity. With the availability of our own captive power, we hope to ramp up operations from our aluminium SEZ from the next fiscal", a senior Vedanta executive told Business Standard. Vedanta owns two aluminium smelting facilities at Jharsuguda. While the standalone smelter of 0.5 million tonne per annum (mtpa) is...
India mines ministry proposes increase in aluminium duty
The ministry of mines in India has proposed a hike in import duty on aluminium to 7.5% from 5% now, and a correction of the inverted duty structure in the industry, in its pre-Budget communication to the finance ministry. If the proposals are implemented, domestic aluminium makers such as Hindalco, Vedanta Aluminium and Nalco would benefit. However, the mines ministry hasn’t favoured the industry demand for a doubling of the import duty on aluminium metal scrap to 5%. The inverted duty structure is deemed to prevail when the taxes on raw materials are higher than that on finished products, disadvantaging domestic value addition. Explaining the severity of the prevailing situation due to a combination of factors such as lower demand, higher imports and subdued price, a senior mines...
Guinea miner Alufer to produce 5 mt of bauxite in 2017
Guinea-focused bauxite miner Alufer will produce 5 million tonnes of bauxite next year, the mines minister said on Monday, potentially boosting Guinea's output by more than a quarter. Guinea holds nearly a third of the world's reserves of bauxite, the metal used to make aluminium, and currently produces around 18 million tonnes. Some mining investment has been held up due to a global commodity price slump. "Alufer will produce 5 million tonnes of bauxite from 2017 for an estimated cost of $140 million," said mines and geology minister Abdoulaye Magassouba at an event marking the signing of a convention between Guinea and Alufer. The independent miner, whose main Bel Air open-pit mine is located near the West African country's Atlantic coast, is set to eventually ramp up production to 10...
China's appetite for imported bauxite to grow bigger in 2016
China’s demand for imported bauxite will remain high in 2016 after a 53.86 per cent increase in 2015, SMM predicts. SMM expects output of alumina in China that relies heavily on imported bauxite to grow to 20.4 million tonnes (mt) in 2016, and this will boost demand for imported bauxite to 55 mt. China’s customs data showed that the country imported 7.11 mt of bauxite in December 2015, up 118.82 per cent from corresponding period last year, and imported 55.82 mt in 2015. Alumina capacity at Shandong Weiqiao Pioneering Group expanded to 11 million-tpy, the main driver of China’s bauxite import growth. In an earlier report, SMM had predicted, China’s appetite for imported bauxite would decline in the short term. The forecast came after Shandong Weiqiao Pioneering Group and Shandong Xinfa...
Alba’s Chief Operations Officer retires after 32 Years
Aluminium Bahrain B.S.C (Alba), one of leading aluminium smelters in the world, today, January 23, 2016 announced that its Chief Operations Officer (COO), Mr. Isa Al Ansari, will be retiring at the end of March after 32 years with the Company. Alba’s Chief Executive Officer, Tim Murray said: "I would like to thank Isa for his numerous contributions to Alba during his tenure with the Company. Isa is a great example of Alba’s objective to promote people from within the company. He started as an apprentice in 1983 and worked all the way up the ladder when he was promoted to the Executive Level in 2010. In his last role as the Chief Operations Officer, he played an instrumental role in the improvement in Safety and Production with Alba setting the all-time production record of 960,643 mt in...
Institute of Scrap Recycling Industries passes right to reuse policy
At its Winter Board of Directors Meeting, the Institute of Scrap Recycling Industries (ISRI), the Voice of the Recycling Industry™, formally adopted a policy in support of recyclers’ ability to reuse products, and the benefits of reusing. "More and more traditional recycling companies are diversifying their business models to include reuse," said Robin Wiener, president of ISRI. "It is essential that they have the legal protections in place that allows the lawful repair and return of these products to the marketplace. This policy allows ISRI to advocate for such protections." The policy states: ISRI members across the commodity spectrum rely on reusing goods and products, including electronics equipment, automotive parts and tires, as part of their business models. Reuse provides an...
Alba strikes higher than the industry benchmark of 5% training hours in 2015
Aluminium Bahrain B.S.C (Alba), one of the top industrial employers in the Kingdom of Bahrain and a leading aluminium smelter in the world, is proud to have achieved above the industry benchmark of 5% training hours of the total man hours in 2015. The company has achieved this figure successfully for three years in a row, thus reiterating its commitment towards employee training and development. Alba has one of the most advanced employee training and development programmes in the Kingdom, wherein the employees are trained as per international standards of excellence in all fields. Alba’s Chief Executive Officer Tim Murray paid a recent visit to the Company’s Training Department, accompanied by Manager Training Rawdha Al Aradi. Murray met with the Alba trainees and highlighted all the...
Milestone for Holyhead biomass project as Anglesey Aluminium site handover is completed
Plans to build a multi-million-pound biomass plant and eco-park that would create around 500 jobs on Anglesey have taken a significant step forward following the official purchase of the site. Orthios has announced that the handover of the former Anglesey Aluminium site in Holyhead has now been completed, paving the way for work to start on the development that will see over 500 permanent and 1,200 construction jobs brought to the island by 2018. The former smelting works has been mothballed since its closure in September 2009, which was a significant economic blow to the island with the loss of 400 well-paid jobs. But Orthios Eco Parks, which already has outline planning permission, will now forge ahead with the plans for a 299MWe biomass-fuelled energy centre and will develop the Eco...
LME aluminium poised for gains this week
LME aluminium is on track for gains this week, SMM expects. The US dollar softened somewhat on weakening expectations for US rate hike. Meanwhile, short-term moving averages of LME aluminium are pointing upward. So, LME aluminium should rise to $1,500-1,530/mt. SHFE 1603 aluminium should continue consolidating at 10,700-10,900 yuan per tonne. Falling aluminium stocks in China and softening consumption as the 2016 Chinese New Year holiday is just around the corner will leave spot aluminium trade at discounts of 0-50 yuan per tonne over SHFE 1602 aluminium.
