Caustic soda plant setup in India: How aluminium growth is reshaping demand, costs and opportunities
Caustic soda may not be the most visible ingredient in aluminium production, but without it, the journey from bauxite to alumina would look very different. The chemical, also known as sodium hydroxide, is a crucial reagent in the Bayer process, where it helps dissolve alumina-bearing material in bauxite and separate it from impurities. The dissolved material is then processed to recover alumina, which ultimately feeds aluminium production. That makes caustic soda more than just another industrial chemical. Its availability, price and efficient use can influence the economics of alumina refining and, by extension, the wider aluminium value chain. As India expands its alumina and aluminium capacity, the requirement for this chemical is also becoming increasingly important. For companies...
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...
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Alba Chairman and CEO visit Emirates Global Aluminium
Aluminium Bahrain B.S.C. (Alba)’s Chairman of Board of Directors, Sheikh Daij Bin Salman Bin Daij Al Khalifa and Chief Executive Officer, Tim Murray visited Emirates Global Aluminium (EGA) on November 20, 2014. During the visit EGA showcased the company’s DX+ Technology, which was used in Alba’s Line 6 Bankable Feasibility study. Alba’s management team were received by Abdulla Kalban , Managing Director & Chief Executive Officer of EGA and Saeed Al Mazrooei, Chief Executive Officer of UAE Operations, and given presentation on various aspects EGA’s operations including reduction cell technologies. Speaking on the visit, Alba’s Chairman, Sh. Daij said: “We sincerely appreciate the partnership with EGA. Alba is pleased to have selected DX+ technology to be used as the baseline for Line 6....
Increasing demand in auto and construction sector putting pressure on aluminium
The increased demand in the cars and construction sectors is putting pressure on the aluminium market which is already showing stress as supply constricts. Since traders are paying high LME prices, close to the two-year peak amounts, as well as high premiums, they are leaning towards hoarding in the hope further increase of prices in the near future. For the past four trading days, the costs to roll over short cast aluminium position for a short term delivery like tomorrow or day after have soared to more than $7 per contract, the highest since 2012. The U.S. auto sales in November have hit an annualized rate of about 17.1 million units, the best recorded November figures since 2004 which has given a boost to aluminium, the recent favorite among automakers. According to LME open interest...
Aluminum in automotive to encourage paintless dent removal policies
The growing use of aluminum in car bodies to save weight and fuel could create an opportunity for dealership F&I departments to sell more paintless dent removal policies, some F&I experts say. Aluminum is nothing new. Import brands such as Audi, Jaguar and Land Rover have relied on aluminum body panels for years. But the redesigned, all-aluminum Ford F-150 pickup puts aluminum on the mainstream F&I agenda because there’s a perception that the metal is susceptible to dents and dings. “Can’t sell dent-and-ding? Ford built the new F-150 out of aluminum,” Rick McCormick, national account development manager for F&I training firm Reahard & Associates, said at an industry conference in September. He said some imports’ aluminum decklids need to be closed just right or they’ll get dinged up in...
North American Aluminum scrap prices dropped on 2nd Dec, 2014
The North American Aluminum scrap prices declined on ScrapMonster Price Index as on December 2nd, Tuesday. 1100 Scrap prices declined by $0.01 per Lb. The prices of 3003 Scrap too fell $0.01 per Lb. A down move of $0.01 per Lb was witnessed in 356 Aluminum Wheels, 5052 Scrap, 6061 Extrusions, 6063 Extrusions and 6063 Extrusions/Fe. The prices of Al/Cu Radiators and Al/Cu Radiators/Fe remained unchanged. Aluminum Radiators and Aluminum Radiators/Fe prices went down $0.01 per Lb each. Aluminum Transformers and Breakage 50% Recovery prices too declined marginally by $0.01 per Lb each on 2nd December. Chrome Wheels, E.C Aluminum Wire, Litho Sheets and Mixed Aluminum Turnings prices dropped by $0.01 per Lb. The prices of MLC Clips, Old Cast and Old Aluminum Sheet declined by $0.01 per Lb....
Aluminum hikes up in the US as demand surges
After declining at the lowest point yesterday since the month of July in the year 2013, aluminum has again regained its posture by increasing its value to 0.3 percent. According to the reports which were published in the month of November, the annual consumption of the automobile industry has been noted as 17.2 million tonnes. The records from the month of October shows that the consumption of aluminum from the construction industry has increased by about 1.1 percent. A Senior Fund Manager at the Astmax Asset Management Inc, located in Tokyo, Testu Emori, stated that the US based sale of aluminum based automobiles is very much impressive in number. He also added that the consumption of aluminum in the construction industry is also positive, and this could bring up tremendous effect on the...
The Indonesia ban attracting upstream investments
The Indonesian constitutional court rejected the challenge raised by the mining companies regarding the country’s ban on raw materials export which was imposed in January. The ban on mineral ores imposed on 12th January was to channel investments in the direction of mineral processing in the country to develop finished goods. However the ban created a stir in the global mineral market and the Indonesian Association of Mineral Entrepreneurs and companies that have mining licenses had filed a request in January to review the laws that formed the foundation of the ban. The chief justice, Hamdan Zoelva however rejected the plea saying that the ruling is final. The newly appointed President Joko Widodo also reaffirmed his consent to the ban last month. The director general of minerals and coal...
Breakaway Research publishes report on Altech Chemicals’s HPA project
Breakaway Research publishes report on Altech Chemicals’s HPA project. Following a change of management and name, Altech Chemicals (previously Australian Minerals and Mining Group) has recently commenced a BFS on its 4,000tpa HPA project. Work over recent years has developed a patented, low cost acid leach process that has produced HPA of the requisite quality. As a result of the recent Integrated Plant Study (“IPS”) Altech has published estimated operating costs in the order of $8,600/tonne of 99.99% purity HPA for a small scale plant, which is significantly lower than our estimated current industry average costs of ~US$ 14,000-17,500/tonne for the equivalent product, and could be a potential game changer for the industry Ideally positioned to enter the rapidly expanding high purity...
The EU import tariff on primary aluminium costs billions of Euros to downstream SME's
The first-ever economic study on the downstream EU aluminium industry conducted by LUISS University in Rome unveils the magnitude of the damage inflicted on EU SME's and the unfair competitive advantages given to EU and extra-EU producers by the current import tariff regime and the financial diversions it permits. The maintaining by the European Union of an economically unjustified import duty on primary aluminium has imposed up to 15.5 billions Euros additional costs to downstream aluminium SMEs in the past fourteen years, seriously impinging on their competitiveness, and has allowed producers of this metal in and outside Europe to cash-in important artificial benefits to the detriment of the competitiveness of the EU aluminium industry. This extra-cost is due to the fact that all...
Ford plants get ready to churn out the much-awaited F-150s
The first, much-awaited, 2015 F-150s to be delivered are coming from the company’s Dearborn, Mich., plant which has worked through early production glitches. Ford workers in Claycomo have been training to build it while continuing to make some of the older F-150s in the interim. The Dearborn plant will be able to build 400,000 of the trucks when at full speed, and Claycomo’s capacity will be 300,000. Ford says its Kansas City area plant will begin manufacturing the 2015 model early next year, but it hasn’t been more specific. It will start with one shift and ramp up to three. The Claycomo plant, which also makes the Transit commercial van, has about 6,000 employees. That’s a stark contrast to a few years ago when the plant lost the Ford Escape and the F-150 was down to one shift, spawning...
Aluminium futures rise on global cues, spot demand
Aluminium prices edged up by 0.61 per cent to INR 122.95 per kg in futures trade today as participants enlarged positions amid a firming trend overseas. Besides, strong demand in spot markets influenced metal prices. At the Multi Commodity Exchange, aluminium for delivery in January 2015 inched up by 75 paise, or 0.61 per cent, to INR 122.95 per kg in a business turnover of 29 lots. Likewise, the metal for delivery in December traded higher by 60 paise, or 0.49 per cent, to INR 122.60 per kg in 9 lots. Marketmen said apart from increased domestic demand, a firming global trend as vehicle sales and construction spending beat estimates in the US, boosting demand prospects in the second-largest base metals consumer, helped aluminium futures to trade higher. Globally, aluminium for delivery...
Growing stockpiles and falling port prices curbs alumina imports in China
According to customs data, China’s alumina imports have seen a sharp decline from last year falling 40.94% to 271,900 tons in October. The prime reason for this fall is the lack of supply from Brazil and Suriname which has also brought down the month on month imports by 21.05%, says the Shanghai Metals Market. These two countries together had contributed 139,000 tons to the total alumina imports received in China in September. Another reason for the fall in imports is that the Chinese port stocks were already mounting while the prices have begun to fall which has help curb the hoarding. Lianyungang port’s stocks have exceeded in October while the prices at the ports have also suffered falling Yuan 2,900/mt in October to Yuan 2,775/mt recorded late November.
Anglo-African Mineral signs contract with drilling contractor in Guinea
Anglo-African Mineral, attempting to continue work defying the raging Ebola outbreak, has signed a contract with Toumyne, a drilling contractor in Guinea in October so that they can take up the Auger drilling campaign on the Momo, Elevation and Samaya plateau, an area which falls under the company’s 100% owned FAR bauxite project license area in Guinea. Approximately 100 drillholes with a 300x300m grid are going to be drilled on the Elevation and Samaya plateau as per plan which will start off on 12 November and continue till the end of the year. On the Momo Plateau the grid is likely to be roughly 600x600m. The drillings will allow a better understanding of the bauxite potential so that the existing Mineral Resource statements for the property can be upgraded. This will also help to...
Kaiser Aluminum Corp. CEO sells 5,000 shares of stock
Kaiser Aluminum Corp. CEO Jack A. Hockema unloaded 5,000 shares of the stock on the open market in a transaction dated Monday, December 1st. The stock was sold at an average price of $73.13, for a total value of $365,650.00. Following the transaction, the chief executive officer now directly owns 23,190 shares of the company’s stock, valued at approximately $1,695,885. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Kaiser Aluminum Corp. traded up 0.01% during mid-day trading on Tuesday, hitting $73.17. 292,088 shares of the company’s stock traded hands. Kaiser Aluminum Corp. has a 1-year low of $66.43 and a 1-year high of $81.62. The stock’s 50-day moving average is $71.8 and its 200-day moving average is $74.2. The...
Brembo to invest €32 million in Mexico caliper plant
Leading Italian brake brand, Brembo, has announced plans to invest 32 million euros in an aluminium brake caliper manufacturing facility in Escobedo, Nuevo Leon, just outside of Monterrey, Mexico. According to the company, the plant will include a new aluminium foundry and machining facility capable of producing two million calipers per year destined for the company’s customers in the NAFTA region. The foundry will have a melting capacity of 14,000 tons. The facility will cover 31,500 square metres and when fully operational is expected to generate an annual turnover of 100 million euros. The plant is expected to commence initial production in 2016 and be fully operational by the end of 2018. Plant outpput will be destined for European, Asian and American original equipment manufacturers...
China’s aluminum semis exports rise to 320,000 mt in October 2014
China exported 320,000 mt of aluminum semis in October, down 5.88% MoM, but up 23.08% YoY, customs data showed. Extrusion exports jumped 27.32% YoY to 65,000 mt in October, and rose 19.63% YoY to 606,000 mt during January-October. Foil exports soared 33.72% YoY to 77,000 mt in October, and grew 13.94% YoY to 716,000 mt during January-October. Exports of plate/sheet and strip increased 12.45% YoY to 155,000 mt, and rose 4.34% YoY to 1.37 million mt through January-October. Exports of mid and high-end aluminum semis held steady due to a stable consumer base. Outbound shipments of low-end products, in contrast, surged as tumbling SHFE/LME aluminum price ratio enticed Chinese producers to sell overseas. Exports are expected to remain high for the foreseeable future.
China’s primary aluminum imports rise 7.41% in October 2014
China imported 5,756 mt of primary aluminum in October, plunging 88.44% YoY, but up 7.41% MoM. YTD imports through October totaled 260,900 mt, up 1.46% from a year ago, customs data showed. Chinese processors and traders usually avoid importing in bulk due to the 17% VAT imposed on imported primary aluminum, except when the SHFE/LME aluminum price ratio proves favorable. Aside from re-exports, most of China’s imported aluminum flows through the tolling trade, but the rise in aluminum premiums overseas has left this less attractive than exporting aluminum semis produced from Chinese aluminum. This has left only those processors that need to maintain customer relationships importing aluminum for tolling trade. As such, China’s aluminum imports will remain low.
New solar array further reduces EGA's power demand
The UAE's aluminium giant Emirates Global Aluminium ("EGA"), has unveiled a mini solar field at one of its core operating assets - Dubai Aluminium ("DUBAL", known as Jebel Ali Operations). The new array, which has a maximum output of 70kW, will generate enough power to run the electricity requirements of the site's Residential Area Office in the daytime, including air-conditioning. The development reflects EGA's on-going commitment to save electricity and use renewable energy sources wherever possible. Other energy-conservation efforts in various areas of the Jebel Ali Operations saved approximately 40,000 MWh since April 2011. The inauguration ceremony, which took place on 1 December 2014, was attended by H.E. Saeed Mohammed Al Tayer (Vice-Chairman: Emirates Global Aluminium), Executive...
U.S. Aluminum Extruders see 10-15% increase in business
Ducker Worldwide, an independent consulting and research firm, recently concluded a study on behalf of the Aluminum Extruders Council (AEC) focused on identifying the benefits from and future risks to the U.S. Aluminum Extrusion market’s trade case against the People’s Republic of China. This revealing report indicates that up to 20% of the U.S. extrusion market has returned to domestic producers. Furthermore, the study lays out three scenarios based on the resolve of and future success in the domestic industry’s defense of the Department of Commerce’s trade orders. “It was clear through trade data analysis and interviews with extruders, customers and suppliers that the AEC’s actions to date in the U.S. industry’s trade case against Chinese extruders have dramatically reduced imported...
