AL Circle Analysis: Aluminium’s recycling economics, trade walls and carbon rules converge
The story of the aluminium industry is starting a chapter wherein scrap availability, recycling technology, trade policy, carbon costs and demand growth are becoming increasingly interconnected. From the US and Canada to Europe, India, New Zealand and China, recent developments show that the global aluminium supply chain is being reshaped on several fronts at once. These developments point to a changing aluminium business model: access to metal alone may no longer be enough. Quality of recycled feedstock, domestic processing capacity, carbon intensity, trade exposure and the ability to meet increasingly specific customer requirements could become equally important competitive factors. Join the fourth edition of the webinar “Hedging for recyclers - Become an expert in 6 hours” by Jorge...
Europe holds 10% of global aluminium extrusion demand, supported by Germany’s Constellium, France’s Hydro Extrusions & Italy’s Metra
Across Europe, aluminium extrusion has become closely woven into some of the region’s biggest industrial and construction markets. From automotive and transport to buildings and industrial applications, extruded profiles are finding demand across a wide range of sectors. This is reflected in Europe’s position in the global market: the region accounted for 12 per cent of global aluminium extrusion capacity, making it the second-largest regional contributor after China. At the same time, Europe represented 10 per cent of global aluminium extrusion usage, out of total global usage of 35.35 million tonnes . With production capacity and usage shares relatively close, Europe’s extrusion capacity and consumption are broadly at par. If we break down Europe’s 10 per cent share of global aluminium...
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“Aluminium is a critical material for the transition to a green economy,” Ulf Nahrath, Vice President of Energy Transition & Infrastructure at Shell UK
Ulf Nahrath assumed his position at Shell UK in 2022, spearheading the company's dynamic energy transition initiative. His responsibilities encompass integrating low-carbon assets into the energy landscape, including wind and solar power generation, hydrogen technology, and carbon capture and storage solutions. Ulf's leadership extends to advancing sustainable aviation fuel initiatives and facilitating the expansion of electric vehicle charging infrastructure. AL Circle: Future decarbonisation solutions for high-energy users like aluminium production and manufacturing have been a major topic of discussion over the past few years. How have technologies evolved during this time? Ulf Nahrath: As companies face increasing pressure to demonstrate their progress towards reaching net-zero goals,...
“Over the past years, primary metal smelters in Canada have incrementally moved towards digitalisation, focusing on automation and robotisation,” Jean Simard, President and Chief Executive Officer of Aluminium Association of Canada
As President and CEO of the Aluminium Association of Canada since 2009, Jean Simard is the industry’s official representative and spokesperson with governments, business associations and the media, as well as with international organisations linked to the industry. He holds a degree in Civil Law from the University of Ottawa and is a member of the Barreau du Québec. He possesses extensive professional experience in public and government relations, mainly in sustainable development, energy, and environmental affairs. Prior to joining the AAC, he was Vice-President of Sustainable Development, Public and Governmental Affairs at Gaz Métro, a Quebec-based energy company. AL Circle: How do you foresee the growth of the aluminium industry in Canada? Which end-user sector do you think will drive...
The announcement of Mytilineos as GIADEC’s strategic partner for Project 3A will be the turning point for the country’s aluminium industry - Mr. Michael Ansah CEO, Ghana Integrated Aluminium Development Corporation (GIADEC)
In 2018, Michael Ansah was appointed by the President of Ghana, His Excellency Nana Addo Dankwa Akufo-Addo, to lead the development of an Integrated Aluminium Industry in Ghana. GIADEC is harnessing Ghana’s 900 million tonnes bauxite reserves, its ownership of Valco, as well as its minority stake in Ghana Bauxite Company Ltd., to build and establish a fully Integrated Aluminium Industry (IAI), leveraging the full value chain of bauxite mining, alumina refining, and aluminium smelting, and giving credence to the President’s vision of a “Ghana Beyond Aid”. He holds an MBA from Cranfield School of Management, UK. Prior to his appointment as CEO of GIADEC, Michael was Senior Vice President (SVP) at Dell Technologies, with responsibilities for Global operations across over 180 countries. In a...
North and South America’s primary aluminium production marks Y-o-Y spike of approx. 8% each; Canada accounts for 80% of the annual production
According to the data released by the International Aluminium Institute (IAI), the total primary aluminium production in North and South America combined was 438,000 tonnes in February 2024, of which South America accounted for only 27.40 per cent. In contrast, North America produced the lion's share of 72.6 per cent. Aluminium demand, driven by individual sectors (source AAC) If we compare this year's production for January and February with the last quarter of 2023, we can find that only 65.5 per cent, or 904,000 tonnes, was achieved. The total haul for Q4 2023 was 1.38 million tonnes. Month-on-Month comparison On a month-on-month scale, North America's primary aluminium production has dipped 21,000 tonnes, or 6.19 per cent, from 339,000 tonnes in January 2024 to 318,000 tonnes in...
US domestic primary aluminium production begins 2024 with an annual drop on account of reduced capacity
The US Census Bureau data showed that the country's domestic primary aluminium production marked a slight slowdown at the beginning of 2024. The year began by continuing the downtrend of 2023 when the US primary aluminium production amounted to 750,000 tonnes compared to 861,000 tonnes in 2022. According to the USGS data, in January 2024, the United States produced 63,000 tonnes of primary aluminium, reflecting a drop of 1,000 tonnes from the previous month. On an annual basis, the output in January 2024 also saw a decline of 1,000 tonnes. The continuous shutdown and operation cuts of aluminium smelters in the United States could be attributed to the fall in domestic production. At present, Alcoa's two potlines out of three at Warrick smelter are operative, Century's Hawesville is...
Revival in the automobile sector likely to buoy Japan’s aluminium demand in FY2024
Japan is one of those countries exhibiting a buoyant aluminium market for the fiscal year 2024, driven by potential demand due to the revival in the semiconductor and automobile sectors. According to the estimated data shared by the Aluminum Research Committee, Japan’s demand for aluminium products will most likely reach 3.85 million tonnes in FY 2024, marking an increase for the first time in three years. Only the demand for rolled aluminium products is projected to fall short of the 4 million tonnes target, remaining at 1.73 million tonnes through FY2024. The Committee, comprising seven industry organizations, estimates that Japan’s aluminium product demand will grow 2.1 per cent compared to the previous year, buoyed by projected automobile sales to grow by 3.7 per cent. Domestic demand...
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Africa & Asia’s (ex-China) robust daily average alumina production in Feb’24 suggests its growth trajectory
According to the International Aluminium Institute survey, alumina production in Africa & Asia (ex-China) during February 2024 recorded a significant annual growth of 13.8 per cent but a month-on-month fall of 3.06 per cent. As per the data, Africa & Asia’s (ex-China) alumina production in February 2024 was 1.171 million tonnes versus 1.029 million tonnes a year ago, indicating that alumina production in Africa & Asia (ex-China) is on a steady growth path. The output declined month-on-month from 1.208 million tonnes mainly because of fewer calendar days in February. Africa & Asia’s (ex-China) daily average alumina output in February 2024 further underpins the above statement as the volume stood at 40,400 tonnes, up by 3.59 per cent from 39,000 tonnes in January 2024. On a year-on-year...
Hindalco Industries’ aluminium prices experience a slash of INR3500/t on March 28
Hindalco Industries Limited has updated its aluminium selling prices on two consecutive days this week in line with the LME aluminium benchmark price. On Wednesday, March 27, Hindalco increased its aluminium prices as the LME aluminium price rallied by 1.29 per cent over the two days to US$2,275.50 per tonne as of March 26. According to Hindalco’s price list for March 27, the company’s aluminium ingot price stood at INR 219,750 per tonne, experiencing an increase of INR 1,500 per tonne or 0.70 per cent from INR 218,250 per tonne on March 22. Hindalco’s aluminium wire rod and billet prices also saw a rise of INR 1,500 per tonne on the same day to come in at INR 231,750 per tonne and INR 233,850 per tonne, respectively, versus INR 230,250 per tonne and INR 232,350 per tonne on March 22. The...
European aluminium supply chain at risk! While domestic producers unwilling to resume operations on weak demand, bans are about to resist foreign goods
The European aluminium sector has just started adapting to the energy price shrunk due to adequate inventories and ease of power consumption restrictions. According to a report, inflation-adjusted futures prices for 2024 averaged 48 euros per megawatt hour, compared to 223 euros at the height of the crisis in August 2022. But what is still causing hurdles to the market growth is passive demand and understated buying and selling sentiments, given the ongoing inflation and economic slowdown. As a result, aluminium producers are hesitant to resume their curtailed capacity, which is evident from the lacklustre growth of primary aluminium production. In addition, various other factors are perhaps threatening the growth of the European aluminium market. Vivid view to Europe’s primary aluminium...
World alumina production in Feb’24 marks a notable annual growth despite short-term fluctuations, advocating strong fundamentals
According to the International Aluminium Institute, world alumina production in February 2024 recorded a fall of 6.89 per cent month-on-month, primarily attributed to fewer calendar days. In this respect, it should be mentioned that the world alumina output started the year with a downtrend, with January production at 11.905 million tonnes, down by 1.43 per cent from 12.078 million tonnes in December 2023. Output trend The deflation continued in the subsequent month (February 2024), bringing the world's alumina production to 11.085 million tonnes. However, compared with the same period last year, the world's alumina production in February 2024 stood 5.99 per cent higher than 10.459 million tonnes. The combined production from January to February 2024 also edged a year-on-year hike of 4.22...
2023: North America market upheaving the demand for US aluminium plates, sheets and bars, with exports growing 5.57% Y-o-Y
According to the US Census Bureau data, the United States’ aluminium plates, sheets and bars exports in 2023 experienced an annual growth of 5.57 per cent, primarily driven by Canada and Mexico, the two highest importers. As per the USGS survey, the United States aluminium plates, sheets and bars exports in 2023 totalled 770,000 tonnes compared to 736,000 tonnes in 2022. Canada accounted for 44.42 per cent of the United States total exports, while Mexico accounted for 38.31 per cent. Despite the annual growth, the exports during the last three months of 2023 saw a sequential fall. In October, the exports decreased by 6.78 per cent M-o-M from 66,400 tonnes to 61,900 tonnes, which further declined in November by 5.33 per cent to 58,600 tonnes and by 6.83 per cent to 54,600 tonnes in...
No slowdown in sight, China's solar sector is projected to grow at unprecedented rate through 2024
The latest data from 2024 indicates that China's solar industry continues its relentless growth, with capacity expansions surging at a rate 80% higher than at the beginning of the previous year. Following an unprecedented 2023 that surpassed all forecasts, expectations for 2024 have been tempered. While many anticipated continued growths, the magnitude of the increase may have yet to be fully expected, suggesting a potential adjustment in projections. Contrary to previous forecasts, the January and February 2024 data reveals a notable surge in solar installations, nearly doubling the rate compared to the corresponding period last year. The data for these two months is combined to ensure accuracy and mitigate the impact of the Lunar New Year holiday, which occurred in the month of...
China holds key to green economy growth, advocates for enhanced emissions trading system: IMF Chief
On March 24, 2024, Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), suggested that China could experience significantly accelerated growth by implementing a comprehensive set of pro-market reforms compared to maintaining the current status quo. In an address to the China Development Forum, Georgiaeva emphasised the importance of improving the property sector, reducing debt risks, and concentrating on domestic consumption. She said, “This additional growth would amount to a 20 per cent expansion of the real economy over the next 15 years. In today’s terms, that is like adding $3.5 trillion to the Chinese economy.” She suggested that taking decisive measures to decrease the inventory of incomplete housing and allowing more room for market-driven...
Vedanta charts course for growth across sectors, unveils $6 billion investment plan
The Indian multinational mining and metal company Vedanta Ltd, spearheaded by billionaire Anil Agarwal, has unveiled an ambitious investment strategy, earmarking a colossal $6 billion across diverse business sectors. This strategic initiative is poised to augment the company's annual EBITDA by a minimum of $2.5 billion, propelling it towards significant expansion and enhanced value generation in the foreseeable future. Pipeline of investment opportunities During an investor meeting, Vedanta executives revealed an extensive investment pipeline consisting of more than 50 active projects and expansions spanning various sectors such as aluminium, zinc, iron ore, steel, and oil and gas. These endeavours are forecasted to yield additional revenue surpassing $6 billion, boosting the company's...
Global law firm White & Case advises Emirates Global Aluminium on the strategic acquisition of Leichtmetall
White & Case, a leading global law firm, provided legal counsel to Emirates Global Aluminium (EGA), a premium aluminium producer, in its acquisition of Leichtmetall Aluminium Gießerei Hannover GmbH (Leichtmetall), a German aluminium recycling company. EGA is set to acquire a 100 per cent stake in Leichtmetall from Leichtmetall Holding GmbH, an entity under the management of Quantum Capital Partners GmbH, an investment fund. Pending regulatory clearances, the transaction is anticipated to be completed in the first half of 2024. Located in Hanover, Leichtmetall specialises in producing high-quality aluminium , predominantly sourced from recycled materials. Employing electric smelting technology, the company melts secondary aluminium using energy derived entirely from renewable sources....
Nyinahin-Mpasaaso Chiefs welcome Mytilineos and GIADEC for their upcoming project 3A
The Chiefs and residents of Nyinahin-Mpasaaso recently convened for a vibrant durbar, extending a warm welcome to the Ghana Integrated Aluminium Development Corporation (GIADEC) and Mytilineos S.A. into their community. This gathering marked the official announcement of Mytilineos as the strategic partner for developing select portions of Nyinahin's bauxite resources and constructing a refinery known as Project 3A. About Mytilineos S.A Mytilineos S.A, a multinational company specialising in industry and energy and listed on the Athens Stock Exchange, was greeted with great enthusiasm by the people of Nyinahin-Mpasaaso and neighbouring communities. The durbar grounds were excited as senior executives from GIADEC and Mytilineos were welcomed by the community. The Omanhene of the Mpasaso...
Concerns mount as implications of the local Novelis plant closure loom in Buckhannon
The recent announcement of the scheduled shutdown of the Novelis aluminum plant in Buckhannon, Upshur County, has sent shockwaves through the community. Expected to cease operations on June 13, the closure spells uncertainty for 80 employees and raises concerns about the economic impact on the region. Mayor Skinner's efforts to seek answers from state officials reflect the gravity of the situation, as the ripple effects of this closure extend beyond economic concerns. Amidst discussions on consolidation and updates to local centers and departments, the fate of Novelis looms large, highlighting the challenges faced by the aluminum industry in an evolving economic landscape. He reassured: "I have been in contact with some of the plant leadership here and also in Atlanta. I have also been in...
Top 10 cases of scientific advancements: Exploring the versatility of aluminium
Aluminium, ubiquitous in nature and abundant in the Earth's crust, emerges as a cornerstone of modern scientific research and technological innovation. Its versatility knows no bounds, permeating industries from aviation to renewable energy, and now, it stands poised at the forefront of ground-breaking scientific R&D endeavours. Within the intricate tapestry of scientific exploration, aluminium emerges as a resilient thread, weaving together a narrative of sustainability, efficiency, and endless possibilities. Enhancing aluminium nanoparticles for sustainable fuel production In the pursuit of eco-friendly fuel solutions, researchers at Rice University unveil a novel approach harnessing the catalytic prowess of aluminium nanoparticles. Through meticulous modifications of the oxide layer...
