AL Circle Analysis: Bauxite developments, alumina trade & primary aluminium market dynamics across Australia, Guinea, US & India
The aluminium industry is entering another phase of supply-chain repositioning. Across bauxite, alumina and primary aluminium, companies are investing in new resources, consolidating strategic assets and expanding processing capacity, while governments are increasingly treating domestic supply as a strategic priority. The latest developments from Australia, Guyana, Guinea, Indonesia, the US and India point to a market where resource security, processing location and control over supply chains are becoming as important as production growth. At the same time, new trading mechanisms and changing investment patterns are beginning to influence how aluminium and its raw materials reach the market. Bauxite supply expands, but securing the right tonnes is becoming harder In Western Australia, VBX...
China's 22.87 Mt extrusion market faces a structural shift as 317 GW solar growth counters weak construction demand
The global aluminium extrusion landscape is undergoing a structural transition driven by industrial decarbonisation, global electrification, and the rapid deployment of clean energy infrastructure. Historically anchored by civil engineering and residential real estate, demand for extruded aluminium profiles in China, the world’s dominant manufacturing hub, is decoupling from traditional property sectors. Persistent structural weakness in China’s domestic construction market has slowed the consumption of conventional architectural profiles such as window frames, door sections, and curtain walls. Conversely, advanced industrial applications, specifically solar photovoltaic (PV) racking, battery energy storage systems (BESS), power grid modernisation, and electric vehicles (EVs), have...
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The Tea Light Fantastic EAFA supports ‘tea light hunt’ recycling campaign in Ireland
The hunt is on in Ireland with thousands of school children in Dublin seeking out used tea light holders to collect for recycling, thanks to an initiative from Alupro Ireland, which is being co-financed by EAFA, the European Aluminium Foil Association. Alupro Ireland’s Tea Light Hunt campaign, launched in conjunction with retailer IKEA and WEEE Ireland, seeks to encourage recycling of used tea light holders in the Greater Dublin area and includes some fun activities for children. A collection challenge and a colouring competition for 2nd to 4th classes have been initiated, with colouring sheets distributed to local schools and available at IKEA’s Dublin store. Within the first two months of the campaign over 1,200 entries were submitted. Tea lights are one of IKEA’s bestselling products....
Hike aluminium import duty to 7.5%: Indian Mines Ministry
The Mines Ministry of India has asked the Finance Ministry to hike import duty on aluminium to 7.5 per cent to protect domestic industry from cheaper metal imports from countries like China. The import duty on aluminium at present is 5 per cent. "The Mines Ministry has written to the Finance Ministry to hike the import duty on aluminium to 7.5 per cent from 5 per cent," said Mines Secretary Balvinder Kumar. Kumar said the proposal has been made to protect the interests of the domestic industry which is faced with cheaper imports. Aluminium industry leaders recently met Finance Minister Arun Jaitley and requested him to raise import duty on the metal to check cheap imports from China, a scenario that can impact investments worth INR 1.2 lakh crore. The delegation from industry body...
Platts prices chosen to settle the new CME Group aluminum Japan futures contract
CME Group, a leading derivatives marketplace, is utilizing Platts physical market price assessments to settle and clear a new aluminum Japan futures contract launched today. Platts is a leading global provider of energy, metals and agriculture information and a premier source of benchmark price assessments. “As an independent provider of aluminum price benchmarks for several decades, we’re pleased to have exchanges such as CME Group recognize the reputation we’ve won in the marketplace and the role we play in price discovery by bringing greater transparency to the physical markets,” said Andrew Goodwin, Platts general manager of metals, petrochemicals and agriculture. The Platts CIF Japan Spot Premium for Aluminum assessment, published daily in the real-time news, information and analysis...
"Accurate material models are critical for any CAE analysis," Steven Sheng, Formability Engineer, General Motors
The 1st GALM summit on Modeling, Simulation and Crash Testing Of Automotive Lightweight Materials will come to Detroit, Michigan on 26-27 January 2016 and bring with it 20+ case studies from OEMs, software developers and material experts. Covering the most important areas from cost efficiency and accuracy in modelling aluminum and composite properties to predicting lightweight material life-cycles and accurate crash simulation, experts at the top of their field will assess the best practices for accurately and efficiently modeling and simulating lightweight materials. Key OEM speakers of the congress include General Motors, Toyota and Honda. Steven Sheng has worked on a wide variety of sheet metal forming projects at various tier suppliers and is now working as a formability engineer at...
Ford develops new technology to recycle old engines
Ford Motor Company is using an innovative new process to give a new lease of life to old engines that would otherwise be scrapped. The process involves the use of a special Ford-patented plasma coating technology. The process delivers a 50 percent reduction in CO2 emissions compared with producing a new engine. Commenting on the new technology, Juergen Wesemann, manager, vehicle technologies and materials, Ford Research and Advanced Engineering said, “We have taken a process that was originally developed to enhance performance models such as the all-new Ford Mustang Shelby GT 350R and used it to remanufacture engines that might otherwise be scrapped. It is just one example of how Ford is looking to reduce its environmental footprint through a range of innovative measures.” Engines that...
Norsk Hydro to cut costs to cope with aluminium price slide
Norsk Hydro, one of the world's largest aluminium producers, launched new cost cuts on Thursday to combat a sharp decline in prices triggered by an oversupply of metal from China. By the end of 2019, the company aims to reduce its annual costs by 2.9 billion Norwegian crowns ($335.70 million), of which 1.1 billion would come in 2016, it said in a statement ahead of a two day investor conference in London. The new plan follows cost cuts of 4.5 billion crowns since 2011. The benchmark three-month aluminium price has tumbled nearly 30 percent in the past year to six and a half year lows, pressured by output exceeding demand. China's production of aluminium is expected to be 2-2.5 million tonnes higher than the country's consumption in 2016, resulting in a global oversupply of up to 1 million...
Centrum Broking expects aluminium prices to recover
Centrum Broking expects aluminium prices to recover next year as over supply in the world market tapers off with China and global aluminium majors cutting back on production in the last few months. The brokerage said the recovery in prices will be based on actual fundamentals rather than speculation this time. It expects global demand to outstrip supply by 0.3 million tonne in 2016. "We expect deficit in aluminium to return in 2016 and pave way for smart recovery in prices as fundamentals, rather than speculation or financial activity, increase in salience for determining prices. Hindalco Industries is our preferred play on an aluminium price recovery," the report said. Centrum maintained its buy on Hindalco, Vedanta and Hindustan Zinc. It said sharp under-performance of non-ferrous...
India's mineral-rich states to auction up to 70 mines this fiscal
Nine mineral-rich states in India are expected to auction up to 70 mines to private firms for captive use this fiscal, mines secretary Balvinder Kumar said on Thursday. Of these, the auction process for 28 mines has started in five states, he said at a CII conference. Kumar also said that the government is in the process of finalising a National Mineral Exploration Policy, a draft of which has been prepared for consultations with the industry. Karnataka is likely to offer 15 mines, Chhattisgarh five and Madhya Pradesh three mines with different mineral reserves, Kumar told ET. The online auction will be conducted by MSTC Ltd on the lines of coal block auction where companies offering higher value for the reserves secure the blocks. Maharashtra has offered Chitale-Watangi bauxite mine and...
IPPI declines in Canada while the U.S. aluminium demand and cosumption stay strong
According to the data released by the Bureau of Economic Analysis, the U.S. real gross domestic product increased at an annual rate of 2.1 percent in the third quarter of 2015, while in the second quarter, real GDP increased 3.9 percent. The demand for aluminium in the United States and Canada (shipments by domestic producers plus imports) totaled an estimated 19,528 million pounds through September 2015, up 1.4 percent over the same period last year. The demand for semi-fabricated (mill) products totaled 13,999 million pounds, up 5.5 percent. Apparent consumption (demand less exports) in domestic markets totaled an estimated 17,380 million pounds, increasing 5.5 percent year-to-date. Aluminum net shipments (including exports) by domestic U.S. and Canadian facilities totaled an estimated...
"As industry commits to climate, a level playing field is needed," Heidi Brock President & CEO, Aluminum Association
Ms Heidi Brock, President & CEO, Aluminum Association made a very strong commentary on global commitment to environmental stewardship at the 21st Session of the COP 21 Climate Summit. She advocated that as some industries, like the aluminum industries of North America and Europe, gained traction on greenhouse gas reductions, it became imperative to level the playing field with their counterparts in markets like China. An excerpt from her commentary below: "As the global community convene in Paris to finalize a lasting agreement tackling climate change, one thing is clear: It will take a steadfast commitment from companies, industries and governments in order to ensure that the agreement is a success. That is why businesses across the globe have been striving to do their part to reduce...
Automotive OEMs to invest more in aluminium to meet fuel-efficiency and emission targets by 2025
In a recently conducted study on the current trends in aluminium usage in cars and light trucks, a number of key observations have been made on the original equipment manufacturers (OEMs), aluminium strategies, including manufacturing activities and joining techniques. Following are the key findings: 1. OEMs are exploring and investing in alternate materials including aluminium to lower vehicle weight, increase fuel efficiency, reduce CO2 emission, and improve overall vehicular safety and noise and vibration levels. This is crucial as automotive OEMs are expected to reduce overall average fleet weight by at least a kg per year in an effort to meet stringent fuel efficiency and carbon dioxide (CO2) emission goals. By 2025, out OEMs are expected to mass produce at least 1...
Notable Achenbach reference in aluminium foil slitting machinery
In the course of completing its second expansion level, the commissioning of the new Achenbach aluminium foil slitting machine for UACJ in Rayong, Thailand, was effected in spring 2015 and achieved prompt acceptance. Since then, the new OPTIFOIL® Heavyslit slits aluminium foil for producing cooling ribs for heat exchangers to the entire satisfaction of the customer. It is the only non-Japanese machine in the new plant. Following a single or double-shift operation, it slits aluminum strips of 11 – 675 mm having a thickness of 0.040 – 0.160 mm. At the beginning of next year the Achenbach aluminium foil slitting machine will be switched into three-shift operation.
Ess Dee Aluminium rises as Macquarie Emerging Markets fund buys bulk shares
Shares of Ess Dee Aluminium, the manufacturer of aluminium foil for packaging purpose, rose 2.12% to INR 312.70 at 12:15 IST on BSE after Macquarie Emerging Markets Asian Trading Pte bought 1.73 lakh shares at INR 306 per share from Standard Chartered Bank (Mauritius) in a bulk deal on the NSE yesterday, 2 November 2015. Meanwhile, the S&P BSE Sensex was down 143.45 points or 0.55% at 25,974.40. On BSE, so far 75,000 shares were traded in the counter as against average daily volume of 64,131 shares in the past one quarter. The stock hit a high of INR 322 and a low of INR 310 so far during the day. The stock had hit a 52-week high of INR 407.70 on 5 December 2014. The stock had hit a 52-week low of INR 121 on 27 March 2015. The stock had underperformed the market over the past one month...
TDK-EPC releases aluminium electrolytic capacitors, current sensors, and transformers
TDK-EPC is introducing several new products. The company is releasing snap-in aluminium electrolytic capacitors from EPCOS that enable optimal contact to heat sinks. This permits link circuit capacitors to be efficiently cooled, thus significantly increasing their ripple current capability and operating life. Therefore, the new capacitors are especially suited for applications in frequency converters and professional power supplies that have very high ripple current loads and offer the possibility of base cooling. Headquartered in Tokyo, Japan, TDK-EPC Corporation is known for its cutting-edge electronic components, modules and systems. The product portfolio of the company includes ceramic, aluminium electrolytic and film capacitors, ferrites, inductors, and high-frequency components....
European Aluminium: Next steps critical for Europe’s Circular Economy
The European Commission adopted an ambitious new Circular Economy Package to help European businesses and consumers to make the transition to a stronger and more circular economy where resources are used in a more sustainable way. The proposed actions will contribute to "closing the loop" of product lifecycles through greater recycling and re-use, and bring benefits for both the environment and the economy. European Aluminium Director-General Gerd Götz issues the following statement on the proposal: “To build a European circular economy, we have to think global. Every year, about one million tonnes of aluminium scrap leave Europe to be recycled in other parts of the world. This is an economic waste that makes us reliant on imports and could be avoided through greater investment in...
Aluminium market rises on short covering, open interest drops 17.09%
Aluminium settled up 1.96% at 98.90 as trader eyed for possible government support in China to help stem an industry downturn that has pushed prices to more than six-year lows. Meanwhile Manufacturing activity in China hit a three-year low in November, an official survey showed, supporting the case for more accommodative policies. A private survey showed November manufacturing contracted at a slower pace than in October. Both metals have been hurt by the severe slowdown in China's sector, and have been unable to capitalise much on planned output cuts. Also support seen after the update that State Reserve Bureau buying of metals and/or government investigations of short positioning, would in our view at best temporarily support metals prices, potentially providing a selling/producer...
Aluminium strengthens on global cues
Aluminium prices firmed up by INR 2 per kg at the non-ferrous metal market today, tracking a firm trend overseas. Traders said increased demand from consuming industries and a firming trend in metal at the London Metal Exchange supported the upside in aluminium prices. Meanwhile, aluminium for three-month delivery rose 0.8 per cent to USD 1,480 a metric tonne on the London Metal Exchange. In the national capital, aluminium ingots, sheet cutting, wire scrap and utensils scrap were up by INR 2 each to INR 142, INR 138, INR 138 and INR 136 per kg, respectively. Following are today's aluminium rates (in INR per kg): aluminium ingots INR 142, aluminium sheet cutting INR 138, aluminium wire scrap INR 138 and aluminium utensils scrap INR 136.
Hydro Capital Markets Day 2015: Well positioned in challenging markets
Norwegian aluminium company Norsk Hydro ASA is focusing its Capital Markets Day 2015 on the efforts to become better, bigger and greener as a means to create value for shareholders. Industry-leading improvement programs, technological leadership, capital discipline and financial strength contribute to strengthen Hydro's relative position in challenging markets. As part of the "Better" ambition, Hydro is raising its improvement ambition with an additional 2.9 billion NOK by end-2019, it is realizing the "Bigger" ambition with selective growth projects such as the Karmøy Technology Pilot, and it is on track to become carbon-neutral from a life-cycle perspective as part of the "Greener" ambition. A complete status update on the Better, Bigger, Greener aspiration will be presented at the...
