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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AWAC returns to help Alumina pay final dividend
Melbourne’s Alumina is expected to continue to pay dividends despite the crash in prices for its namesake intermediate aluminium product. The impact of the crash in alumina prices hit home yesterday with the release of Alcoa’s fourth (December) quarter results in the US, with Alcoa the manager of the 60-40 global alumina alliance (AWAC) with Alumina. The Alcoa result of $US65 million ($93m) was better than expectations but was down from $US432m in the previous corresponding period, due mainly to savage alumina and aluminium metal price falls. Citi noted that Alcoa’s alumina earnings before interest, tax, depreciation and amortisation margin in the fourth quarter was $US57 a tonne, down from $US95 a tonne in the third quarter and $US100 a tonne in the first half of 20125. Third-party...
Alcoa reports ATOI $98 mln in Q4 2015 despite 24% alumina price decline
Lightweight metal major Alcoa reported fourth-quarter and full-year 2015 results yesterday. Despite lower alumina and aluminium prices, the Upstream verticals remained profitable. In the face of a 24 percent alumina price decline, after tax operating income (ATOI) was $98 million in the fourth quarter, down $114 million sequentially from $212 million and $80 million lower year-over-year from $178 million. Sequentially, cost reductions slightly offset the impact of lower pricing related to both the Alumina Price Index and London Metal Exchange-based contracts and unfavorable foreign currency movements. Adjusted EBITDA per metric ton decreased $38 from third quarter 2015 to $57 in fourth quarter 2015 and decreased $28 year-over-year.
Six Chinese firms to form JV for commercial aluminium stockpiling - Antaike
Six large Chinese aluminium producers in China are considering forming a joint venture company that will handle primary aluminium stockpiling, a report by state-backed research firm Antaike said on Tuesday. The six companies -- four state-owned firms and two private enterprises -- include Aluminium Corp of China (Chinalco), State Power Investment Corporation, Yunnan Aluminium, Jiugang group, Jinjiang group and Weiqiao Aluminium & Electricity, Antaike said. The amount that the joint venture company will stockpile has not been decided, according to the report. An aluminium stockpiling plan has been discussed over the past few weeks after aluminium prices fell to multi-year lows in the second half of last year, and is likely to be funded by commercial loans, sources have said. The...
RUSAL announces staff reshuffling in Aluminium Division
UC RUSAL, a leading global aluminium producer, announces a number of senior staff appointments within the company’s Aluminium Division. Evgeny Popov has been appointed as Managing Director of Sayanogorsk Aluminium Smelter (SAZ). Prior to the appointment, Mr Popov worked as Director of Production Department of the Aluminium Division. Evgeny Kuriyanov has been appointed as Managing Director of Irkutsk Aluminium Smelter (IrkAZ). Prior to the appointment, Mr Kuriyanov worked as Director for Reduction Process at Krasnoyarsk Aluminium Smelter (KrAZ). In their new roles, Evgeny Popov and Evgeny Kuriyanov’s responsibilities will include expanding the range of value-added products (VAP), improving these products’ quality, continuing the RUSAL Business system’s further development, as well as...
China's top aluminium maker aims to raise $490 mln with stock
China Hongqiao Group. Ltd., the world’s biggest maker of aluminium, will raise nearly half a billion dollars from a rights offer underwritten by its founder, highlighting the difficulties of producers amid five-year-low commodities prices. The company’s shares fell in Hong Kong. The Shandong province, China-based company aims to bring in HK$3.84 billion ($490 million) by offering seven shares for every 50 held by shareholders, the company said in a statement to the Hong Kong stock exchange after close of trading on January 8. Chairman and founder Zhang Shiping, who has pledged to underwrite 99 percent of the issue, holds more than 78 percent of Hongqiao through a holding company, according to the statement. “Strategically the raising will address working capital needs and highlights the...
LME aluminium may edge up to $1,511
LME aluminium may edge up to $1,511 per tonne, as it has cleared a resistance at $1,479. The resistance was provided by the 38.2 percent Fibonacci projection level of a downward wave C, the third wave of a three-wave cycle from the September 9, 2015 high of $1,655.50. The next resistance will be at $1,511, the 23.6 percent level, around which the current bounce may end and the wave C will resume. A fall below $1,479 could also signal the resumption of the wave C towards $1,453, the 50 percent projection level.
Viastore to supply automated conveyor solution for aluminium alloy wheel manufacturer
Viastore Systems, a leading material handling automation systems and software company, was selected by Dicastal North America, the North American division of CiTic Dicastal Co. Ltd. of Qinhuangdao, China to supply and install an automated conveyor solution for the company’s new manufacturing facility in Greenville, MI. Dicastal selected viastore after reviewing several companies. While being a Michigan-based company played a role in the selection, Dicastal also selected viastore because of an innovative design solution that reduced Dicastal’s upfront capital costs. “viastore was able to design a system for us that made sense and was economical to your needs to today, yet allowed for growth for tomorrow,” said Bernie Polzin, GM/VP, Dicastal. “We’re eager to get the project underway.” For...
China Zhongwang company recognized as an SME with "High Industrial Growth in Liaoyang"
Recently, Liaoning Zhongwang Machinery and Equipment Manufacturing Co., Ltd, a company under China Zhongwang, was recognized as one of the "Hundred SMEs with High Industrial Growth in Liaoyang" by Liaoyang City Economic and Information Technology Commission. By carrying out the recognition work, the Commission aims to further implement the spirit of the "Opinions of the State Council on Several Recent Major Policies and Moves for Supporting the Revitalization of Northeast China" (National [2014] No.28), to enhance the independent innovative ability of industrial enterprises in the whole city, and to actively encourage the development of the SMEs of high growth rate. The Commission made its decision after corporate application, expert judgments and rounds of discussion among the...
Chalco seeks extending aluminium value chain to downstream
Chalco is seeking to extend its value chain to downstream business against setbacks in aluminium segment after prices of the light metal sank to multi-year lows. Chalco will focus on manufacturing of aluminium semis used in transportation and construction sectors, mainly aluminium used in high-speed train and aluminium formwork, as well as aluminium automotive sheet,Chalco Chairman Ge Honglin was quoted as saying in a recent meeting. China’s demand for construction formwork is about 800 million m2 each year, said Chinese aluminium expert Lang Dazhan in an interview. Should all these formwork be made of aluminium, this will equate to about 20 million tonnes of aluminium consumption,Lang added. Chalco spokesman Nie Zhen said Chalco is planning to build a plan that produces aluminium...
Sapa lends support to Stirling aircraft project
Sapa’s aluminium extrusion company in the UK helped in the reconstruction of a Short Stirling Bomber aircraft used in World War II. The project is a tribute to the people who designed, maintained and flew the historic aircraft. Sapa Profiles UK worked alongside The Stirling Aircraft project team to help construct a forward fuselage section, which incorporates the main crew stations in the plane. The extrusion supplied by Sapa is located at the bottom of the fuselage bomb bay and attaches to the bottom of the frame, where the outer bomb doors are attached. The extrusion is an integral part of the bomb bay structure and acts as the main keel of the fuselage. First of its kind The Stirling Project and Sapa's Steve Nash (right)The Short Stirling Bomber was the first operational four-engine...
Alcoa announces long-term contract with GE Aviation
Lightweight metals leader Alcoa has signed a long-term contract with GE unit GE Aviation for jet engine components in an agreement valued at more than $1.5 billion over the contract life. Under the deal, Alcoa will supply advanced nickel-based superalloy, titanium and aluminum components for a broad range of GE Aviation engine programs. “We greatly appreciate GE’s continued confidence in Alcoa’s aerospace capabilities, and are proud to support its advanced jet engine programs through this agreement,” said Alcoa Chairman and Chief Executive Officer Klaus Kleinfeld. Alcoa will employ advanced manufacturing capabilities to produce the parts across several facilities including LaPorte, Indiana; Whitehall, Michigan; Hampton, Virginia; Dover, New Jersey; Wichita Falls, Texas; Winsted,...
Glencore’s U.S. unit Sherwin Alumina files for bankruptcy
Sherwin Alumina Co., the troubled U.S. unit of commodities company Glencore Plc, filed for chapter 11 bankruptcy Monday as a protracted slump in the price of aluminum and a labor lockout strained the alumina plant operator’s finances. Sherwin entered bankruptcy with a plan to sell its assets to another Glencore unit called Corpus Christi Alumina, in exchange for forgiveness of $95 million in debt plus $250,000 in cash. Commodity Funding LLC, another Glencore unit affiliated with Corpus Christi, has also agreed to provide $40 million to Sherwin to fund its operations during the bankruptcy case. The company hopes to gain court approval of a plan to test that offer at auction on March 23 and ultimately exit bankruptcy by March 31, according to court documents. “Glencore is supportive of the...
Noranda issues statement regarding its New Madrid aluminum smelter
Noranda Aluminum Holding Corporation today announced that production has been idled at two of the three pot lines at its aluminum smelter in New Madrid, Missouri, following an electrical supply circuit failure. The electrical supply circuit failure occurred shortly before 1:00 p.m. Central Time on January 7, 2016 and no serious injuries were reported. Noranda is assessing the incident to determine its root cause. The third pot line was not directly affected and production in that line has continued. As Noranda's Flat-Rolled Products business sources metal from a portfolio of suppliers, the Company believes it has access to sufficient sources of aluminum to meet customer commitments for flat-rolled products. The Company is evaluating its ability to meet customer commitments for its primary...
42% of Chinese aluminium smelters expect prices to stabilize this week
About 42% of the 34 Chinese aluminium smelters surveyed by SMM expect aluminium prices to stabilize this week. These market players expect SHFE 1603 aluminium to consolidate. On the one hand, smelters will open short positions for hedging purpose after SHFE aluminium rise, which will put downward pressure on prices. On the other hand, short selling eased after SHFE aluminium touched the 20-day moving average. With a lack of positive or negative news, both longs and shorts will stay cautious. Another 29% are optimistic that LME aluminium will rise above USD 1,490/mt and SHFE 1603 aluminium will climb above RMB 10,900/mt, citing a series of positive factors. 1. More smelters have cut production, and new capacity is delayed from coming online; 2. Alumina producers cut output in response to...
AWAC-Alcoa JV partner Alumina's margins hit by price rout
Australian company Alumina, the junior partner in the AWAC joint venture with Alcoa, said lower alumina and aluminium prices and unfavourable currency movements had negatively impacted margins during the final quarter of last year. The comments came as Alcoa, the first major US company to report fourth quarter results, said its revenues slumped 18 per cent in the period amid sharply lower aluminium prices. Alumina chief executive Peter Wasow said higher production at the group’s Australian refineries, along with productivity gains, energy savings and a clamp down on costs had somewhat offset the margin declines. “AWAC continues to adjust its portfolio to improve its cost position and ensure continued competitiveness in the prevailing market conditions,” Mr Wasow said. AWAC’s production of...
CME Japan aluminium premium contract logs first trade
CME Group has logged the first trades in its Japan aluminium premium contract, data from the exchange showed on Monday, just days after the industry hammered out the first quarter premiums for Asia's biggest importer of the metal. The trades, coming in the wake of the quarterly industry negotiations, deal a blow to the London Metal Exchange as the U.S. bourse builds up its metals business in Asia. CME's premium contract, which launched Dec. 7, traded 622 lots in several block trades on Friday for contracts from January to December 2016. The January contract settled at $108.78 a tonne, while those along the curve settled at $108. The contracts were bid at $95 a tonne and offered at $115 on Monday. Japan is Asia's biggest importer of the metal and the premiums for primary metal shipments it...
Alcoa Q4 2015 and Full-year Results: Upstream posts profit despite price free-fall
Lightweight metals leader Alcoa announced full-year 2015 results yesterday, ending the year on solid operational footing. In fourth quarter 2015, the Upstream remained profitable despite lower alumina and aluminium prices. Every segment delivered productivity gains. The company also undertook restructuring to further strengthen the Upstream portfolio and streamline overhead ahead of its planned separation in the second half of 2016. Q4 Results: In fourth quarter 2015, Alcoa reported a net loss of $500 million, or $0.39 per share. Results include $565 million in special items related primarily to closures or curtailments of capacity in the Upstream business and discrete income tax charges. Fourth quarter 2015 results compare to net income of $159 million, or $0.11 per share, in fourth...
Malaysia bauxite mining and export ban to have limited impact on China aluminium
Ever since a Malaysian government official reportedly said in an interview on January 2 that the country will likely suspend bauxite mining and exports at certain mining sites out of growing environmental concerns, tension has been brewing over how the decision would impact China aluminium market. China, a country that has relied heavily on bauxite from Malaysia since export ban by Indonesia – China’s once top supplier of the aluminium smelting raw material – in January 2014, is belived to be, however, coping with the scenraio comfortably, at least in the near term. SMM understands, the stance shown by the Malaysian government does not mean the country will impose an outright ban on bauxite exports as Indonesia did. Malaysia is expected to resume bauxite mining and exports once local...
