Aluminum investment across North America and Asia: Who leads reshaping the next phase of growth?
Aluminum investment has been spreading across the entire value chain, from primary smelting and alumina refining to recycling, rolling, extrusion and battery foil, building more integrated and higher-value supply chains. During the past 5 years, the US and Canada in North America and China in Asia have been grabbing headlines pertaining to the aluminum industry. These updates have involved growth stories or have shed light on volatile market situations. How have these headlines contributed to a greater picture for the benefit of the aluminum industries of the two continents? Between 2021 and 2026, major projects across North America and Asia have targeted new primary capacity, lower-carbon production, recycled aluminum and higher-value downstream products. But the investment pattern is...
AL Circle Analysis: From 13% costlier cans to 317 GW solar, aluminium trade enters new territory
As aluminium continues to draw the spotlight as a strategic variable in global trade rather than a merely traded commodity. Tariffs imposed at the border are now showing up in the cost of cans, auto components and downstream products, while high copper prices are encouraging manufacturers to redesign products around aluminium. Meanwhile, India is tightening protection around selected aluminium products even as domestic downstream manufacturers question the cost of protecting primary metal. China’s extrusion industry is adjusting to weaker construction demand by moving towards solar, batteries and other clean-energy applications. In North America, deeply integrated supply chains are confronting the consequences of suddenly changing tariff economics. To know the global production, demand...
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Ducab Aluminium starts construction of aluminium rod manufacturing plant
Ducab Aluminium Company is setting up a news aluminium rod and conductor facility in Kizad, announced the Abu Dhabi Ports Company (APDC). In May this year, the Musataha lease agreement was signed between Ducab and APDC and now the foundation is laid to start the construction of the facility so that it can open in the fourth quarter of 2015. A 50,732-sqm plot of land has been selected for the Dh220-million project located near Emirate’s Aluminium (Emal), the anchor tenant of the region. The close proximity with the world’s fifth largest aluminium producer means that an optimum supply chain connection can be created allowing Ducab to make use of molten aluminium coming directly from the Emal smelter. This not only cuts down transporation costs but also energy costs as there would be no...
China’s bauxite imports from Malaysia has grown 14 times since March
After the Indonesian bauxite export ban, China has imported nearly 14 times more bauxite form Malaysia in November as compared to March. In March, 48,594 tons of bauxite was imported from Malaysia, a month earlier it was 640,200 and in November it rose by 6.1% to 679,287 tons says the data from customs administration released in Beijing on Monday. In the 8 months between March and November, 2.6 million tons were imported from Malaysia to China. The Indonesia’s decision to curb mineral ore export despite being the third-largest supplier of bauxite hit the aluminium industry hard although it did help boost aluminium prices. Now Malaysia is soon becoming a strong exporter of bauxite which is assumed to 10 million tons next year. Out of the 2.57 million tons of bauxite bought by China, 42%...
Aleris releases its inaugural sustainability report
Aleris released its first corporate sustainability report, covering the company's progress on its sustainability journey between 2011 and 2013. The report highlights Aleris' approach to sustainability, including improving the sustainability of its customers, reducing its environmental footprint, and continuing to increase the use of recycled content in its products. "This first sustainability report is a milestone for Aleris, and an opportunity to highlight the progress that has been made over the last few years," Steve Demetriou, Aleris chairman and CEO said. "Sustainability is a key business platform that helps us manage our global operations responsibly and support the sustainability of our customers. While we have work to do, we've made great progress in establishing the baseline that...
Paulwell to make major bauxite announcement today
There are indications that a decision has been reached regarding the reopening of mining and refining operations at St Elizabeth-based alumina producers Alpart by UC RUSAL. In an advisory on Friday, the Mining Ministry says portfolio minister Phillip Paulwell is to provide an update of major developments in the bauxite/alumina today, December 22, 2014. According to the statement, the announcement will be dealing with a recent approval by the Cabinet of a submission to address the restarting of mining and refining operations at Alpart. Last month, Paulwell announced that UC Rusal, had until December 31 to re-open the ALPART plant in St Elizabeth or risk losing its mining rights. The Alpart plant has been closed for five years, with UC Rusal citing the low market price for its product and...
Alba Power adds new air compressor to existing fleet
Aluminium Bahrain B.S.C. (Alba) bolstered its reputation as a leading energy efficient aluminium producer with the addition of a new air compressor to its existing fleet in the utilities wing of the Company’s Power and Utilities Department. The new unit has been installed with an aim to cater to the growing demand for compressed air to match aluminium production creep targets. Highlighting further, Alba’s Director for Power and Utilities, Amin Sultan said: “The installation of the new unit was in line with Alba’s commitment to efficiency, where the Company continually endeavours to upgrade its systems to ensure enhanced productivity. We successfully implemented this project in-house where the cost was optimised by the packaging of contracts to optimum level, and not opting for a turnkey...
Aluminium market under long liquidation, open interest drops 7.15%
Aluminium settled down -1.2% at 119.25 after US economic data were mixed overnight. Initial jobless claims and the Conference Board Leading Economic Index were positive. But Markit’s service PMI and Philadelphia Fed’s manufacturing index missed forecasts. A firm dollar and falling crude oil prices dampened market sentiment. In this context, LME aluminum fell back to USD 1,902/mt after rising slightly, and ended at USD 1,911/mt. While the contango in the aluminium forward curve has edged higher in recent weeks after nearly moving into backwardation last month. The contango in the 27-month aluminium forward is now USc5/lb, while the contango in the 15-month aluminium forward is now USc3.5/lb. A contango forms in commodity forward curves when there is a surplus in the underlying commodity....
QAL donation keeps TAFE students sparking along
Queensland Alumina Limited's electrical integrity team has donated high voltage testing equipment to CQUniversity. The donation will allow CQUniversity TAFE Gladstone to continue offering an important high voltage testing course for all of Gladstone's electrical instrument apprentices. QAL's primary distribution supervisor Sean Nash and electrical integrity training officer Carly Bolton presented the equipment to CQU Pro Vice-Chancellor (TAFE) Dr Greg McMillan, Associate Vice-Chancellor Dr Owen Nevin and TAFE teacher George Scott. "This donation will benefit some 250 TAFE students currently undertaking an apprenticeship through TAFE Gladstone," Dr McMillan said. "It means they will be able to increase their capability to undertake testing in a workplace simulated environment to Australian...
Shiloh Industries opens a new die-casting plant in Tennessee
A new aluminium die casting plant opened today at Montgomery County, Tennessee owned by Shiloh Industries Inc., a solution provider in terms of lightweighting, noise and vibration. In August, 2013, the brownfield site was acquired by Shiloh which is now to undergo a host of renovations, upgrades and addition of new equipment implying an investment of over $20 million and an addition of 150 new jobs, over the course of the next five years. The plant is one of five Shiloh large tonnage, high-pressure die casting facilities in U.S. spread across 125,000 sq. ft. The Clarksville plant has been undergoing renovations ever since Shiloh took control over it, with upgrades in the quality lab, die cast cells, x-ray systems and employee facilities. There is also the inclusion of a 2,500-ton die cast...
Anheuser-Busch to invest $150-million for expansion in aluminium bottles production
Anheuser-Busch plans to increase the production of aluminium bottles for Budweiser and Bud Light and is preparing to invest $150-million for the same, the company announced at its Metal Container Corp. facility in Arnold, Mo. The proposed expansion will create 70 new jobs at the plant while doubling its aluminium-bottle capacity in the US. The $130 million project was completed in 2013 that added the capability of aluminium-bottles production to the Arnold facility. The new investment would be the second phase in the expansion for producing the popular aluminium bottles and reflects Anheuser-Busch’s focus on strategic investments in its operations. Metal Container Corp., a subsidiary of Anheuser-Busch, operates seven facilities in the U.S. The operation also produces cans and lids for...
First Aluminium grows amid environmental challenges
First Aluminium Nigeria plc continues to grow amid environmental challenges buffeting the performance of firms operating in the sector, analysis of the third quarter (Q3) financial statement shows. For the first nine months through September 2014, the company’s revenue increased by 5 percent to N6.56 billion from N6.24 billion the same period of the corresponding year (Q3) of 2013, while net income surged by 74 percent to N32.54 million. Nigeria’s roofers have been pressured by what analysts refer to as the peculiarities of the challenging macroeconomic environment, such as huge energy costs fuelled by unreliable power supply from the grid, and unfavourable competition from Asian countries like China. It should be noted that the influx of cheap and substandard products into the country...
Sapa extrudes first aluminium MPE in India
Sapa has extruded the first aluminium multi-port extrusion (MPE) from its new press in India. Its aim is to become the preferred supplier of MPEs and drawn tubes for heat transfer applications to automotive and industrial customers in India. The operational milestone comes ahead of schedule, some five months after Sapa announced its decision to invest in a new aluminium tubing facility in Kuppam and become the first manufacturer of such products in India. The new operations are being installed on the same site as Sapa’s extrusion plant in Kuppam, which is about 100 kilometers from Bangalore in India’s southeastern region. Coiling operations at Sapa tubing plant in Kuppam, IndiaSapa extruded its first test batch of aluminium MPEs at the new facility on December 11. “Having reaching this...
Quebec government grants extension to Rio Tinto
An agreement signed between Rio Tinto Alcan and the Quebec government now allows Rio Tinto to extend the remaining aluminium operations the company has in Arvida in Saguenay until the end of 2020 that will save 1,000 jobs. Through the agreement, Rio Tinto Alcan will be entitled to low preferential electricity price on the condition that they sell the excess energy to Hydro-Quebec at the same discounted rate. The annual output is going to be stepped up from 35,000 tonnes to 150,000 tonnes, the company agreed. The smelter was commissioned on 1941 and the outdated Soderbeg technology used here is being phased out of all Quebec smelters to comply with the strict environmental regulations which has to be done by Dec. 31. A nearby Rio Tinto facility in Arvida, the AP60 research and development...
Hindalco loses chance to acquire Mahan and Talabira coal blocks after reallocation
The recent reallocation of mines ordered by the Indian Government has dashed Hindalco’s hopes of bidding for the Mahan coal block to power its smelter as the Coal Ministry has specifically marked it for the power sector. Hindlaco had planned to use the coal from Mahan to power the Mahan Aluminium smelter where the company had invested around INR 10,500 crore. The Odisha-based Mahan coal block had been earlier assigned to Essar Power and Hindalco and now it has been reserved wholly for the power sector, which means that although Hindalco cannot access the mine, Essar Power can if it decides to bid for it. Hindalco also hoped that it would get a second chance at the Talabira coal block which had been de-allocated by the Supreme Court on 24th September. The mine could provide the power to...
Refinery at Ma’aden-Alcoa joint venture produces first alumina from Saudi Bauxite
The Saudi Arabian Mining Company (Ma’aden) and lightweight metals leader Alcoa today announced that the alumina refinery at their joint venture aluminum complex in Saudi Arabia has successfully produced its first alumina from Saudi Arabian bauxite. The alumina refinery at Ras Al Khair is the first ever refinery to be constructed and operated in the region. The milestone marks the commencement of the final link in the supply chain of this fully integrated aluminum facility. The alumina refinery will refine Saudi Arabian bauxite, supplied from Ma’aden Aluminium’s mine at Al Ba’itha and transported by 600 km rail to Ras Al Khair. The alumina from this refinery will feed into the Ma’aden Aluminium Smelter which produces the aluminum needed for the Ma’aden Aluminium Rolling Mill. This fully...
Ford F-150's endless recyclability will compensate its cost
The Ford F-150 has created a buzz in the auto industry for the daring use of aluminium in their most popular vehicle. Although the move was primarily to improve fuel efficiency of the vehicle with the lightweight body, it will also have a positive impact in recycling. The pick-up tuck is the most talked about vehicle to hit the road in recent times as Ford has gone to great lengths to create and introduce the car to the public. A lot of investment has gone into the project that holds a fair amount of risk. However, there are signs that the F-150 is worth the effort. For starters, by the time the new truck exits the factory and hits the showroom, there will be $300 worth scrap left behind in the factory. Aluminium, being a highly recyclable metal, can be implemented into a “closed loop”...
Noranda Aluminum Holding (NOR) jumps 5.49% on December 17
Noranda Aluminum Holding ($NOR) was among the biggest gainers on the Russell 2000 for Wednesday December 17 as the stock popped 5.49% to $3.46, representing a gain of $0.18 per share. Some 1.13 million shares traded hands on 4,092 trades, compared with an average daily volume of 843,333 shares out of a total float of 68.87 million. The stock opened at $3.30 and traded with an intraday range of $3.46 to $3.27. After today's gains, Noranda Aluminum Holding reached a market cap of $238.28 million. Noranda Aluminum Holding has had a trading range between $5.64 and $2.34 over the last year, and it had a 50-day SMA of $3.88 and a 200-day SMA of $3.99. Noranda Aluminum Holding Corp is a North American integrated producer of value-added primary aluminum products and high quality rolled aluminum...
Saudi Arabia quickly emerges as a competitor in the aluminium industry
Saudi Arabia may have been late to build an aluminium industry compared with the other countries in the GCC, but it is now putting the finishing touches on an integrated production chain that surpasses anything else in the region. A $10.8bn aluminium complex is nearing completion at Ras al-Khair on the east coast that includes an alumina refinery, smelter and a rolling mill. The refinery is fed by a bauxite mine in the north, with the reserves guaranteed supply to the complex for at least 30 years. There are already plans to expand the complex, as well as developing downstream conversion industries. What sets the kingdom apart is that it is an end-to-end aluminium production chain. Saudi Arabian Mining Company (Maaden) has once again successfully exploited the country’s rich mineral...
Hindalco aiming to hit a record $1 billion worth of aluminium export by 31st March
Birla-owned Hindalco Industries is targeting to export a record $1 billion worth of aluminium by 31st March as the demand in Europe and US rise. At the close of the financial year ending March 31, the overseas shipments are expected to triple reaching as much as 400,000 tonnes, whereas they have not even reached half that number as of the middle of last month, say sources. Hindalco, the world’s largest supplier of aluminium sheets supplier has been facing a slowdown on the domestic front for five straight quarters. Now, as the emission norms in US and Europe get stricter, auto makers are scrambling for aluminium to produce lightweight, fuel-efficient cars, Hindalco can look forward to greater overseas sales and a steady market for its new increased capacity. The demand-supply of aluminium...
