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...
Grow with
AL Circle
CBIX retreats 2.7% to close at US$46.9/dmt
<p>CBIX retreated 2.7 per cent (US$1.3/dmt) over the week, closing at US$46.9/dmt. The fall signalled the return of some Malaysian bauxite to the Chinese market, which is typically priced lower (on a value-adjusted basis) than cargos from other countries. Malaysia’s return weighed heavily on this week's closing price. Malaysian FOB prices remain unchanged at US$26/dmt for unwashed material, with washed material still selling for US$37/dmt FOB.<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Bauxite%20Index%209.7.16.jpg" alt="News" width="621" height="421" /><br /><br />Guinean bauxite continues to be exported to China in increasing volumes, with both cape and panamax vessels now...
London Metal Exchange cuts fees after pressure from members
<p>The London Metal Exchange has bowed to pressure from disgruntled members and slashed fees for one of its most popular trades in an attempt to stem falling activity.<br /><br />The move is a climbdown for the world’s centre for metals trading and its parent company Hong Kong Exchanges and Clearing, which bought the 139-year-old exchange for £1.4bn in 2012.<br /><br />Charles Li, chief executive of HKEx, had defended the LME’s fee structure as recently as June, saying its charges were not excessive and it was not “ripping off” its members.</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/lme.jpg" alt="News" width="512" height="288" /><br /><br />The LME said late on...
DEHN Africa introduces earthing and short-circuiting device with aluminium cable
<p>DEHN Africa has introduced a novel aluminium earthing and short-circuiting solution which is supposed to find wide-scale use in railway overhead line installations. <br /><br />When using aluminium-cable earthing and short-circuiting devices instead of copper-cable for railway systems, switchgear installations or overhead lines, the advantage of the weight-reduced cables becomes immediately evident. The new aluminium earthing and short-circuiting device (single-pole, 50 mm² or 70mm²) from DEHN Africa is considerably easier to transport and use than conventional devices.<br /><br />In the past, high copper prices led to material theft and damage, meaning that the new earthing and short-circuiting device with aluminium cables offers. The new offering from DEHN Africa comes in a...
Hull shipyard MMS builds first aluminium catamaran
<p>A 100 per cent "made in Hull" workboat, which will support the offshore wind farm industry, has had its official launch. The MMS Crusader is the first in a series of aluminium catamarans to be purpose-built to support the offshore renewable energy sector.<br /><br />Capable of carrying out a number of roles, from fuel or crew transfer to dive support or guard work, the aluminium vessel was built by MMS based at Alexandra Dock, Hull.<br /><br />Established for 28 years, the company has mainly been involved in ship maintenance and repair and, in addition, has built various workboats. Operating vessels is a new and separate division of the company called MMS Offshore Renewable Services, for which MMS Crusader has been built.</p> <p><img style="vertical-align: middle; display: block;...
Rio Tinto’s H1 aluminium production at record levels
<p>Anglo-Australian mining titan Rio Tinto reported financial results for the first half of 2016 yesterday. The firm credits strong performances in bauxite and aluminium as contributing to their strong performance in the half.<br /><br />“Rio Tinto has generated net cash from operating activities of $3.2 billion and reported underlying earnings of $1.6 billion, against a backdrop of continued volatility and lower commodity prices,” explained Rio Tinto chief executive Jean-Sébastien Jacques. “We focus on delivering value to shareholders. This focus is unrelenting, with further cost reductions achieved in the half and EBITDA margins of 33 per cent. With our strong operating cash flows, tight control over capital expenditure and progress on divestments, the balance...
India major aluminium scrap prices remain flat; aluminium futures up
<p>India major aluminium scrap commodities prices remained flat on Wednesday; while aluminium futures prices at Multi Commodity Exchange ended up as support seen after Norsk Hydro raise its estimate of growth in global aluminium demand to between 4 per cent and 5 per centfrom 3-4 per cent. <br /><br />The major aluminium scrap commodities showed a flat trend during Wednesday. India's major scrap commodities like aluminium accessories scrap, aluminium cable scrap , aluminium rod company, aluminium rod local, aluminium scrap 6063, aluminium scrap taint/tabor, aluminium sheet cutting, aluminium wire scrap remained flat on Wednesday.<br /><br />The most active August aluminium contract on Multi Commodity Exchange settled slightly up by 1.21 per cent to INR 109.85 per kilogram on Thursday from...
Nanotherm launches 100um through-hole via technology for LED packaging applications
<p>Cambridge Nanotherm, a producer of innovative Nanoceramic thermal management technology for LEDs, has launched ‘Nanotherm DMTH' - a double-sided substrate interconnected by laser drilled 100um through-hole vias. The technology development enhances Nanotherm DM’s position as the leading substrate choice for high-brightness LED packaging applications.<br /><br />Nanotherm’s patented electro-chemical oxidation (ECO) process converts the surface of aluminium into a super-thin ceramic layer, forming a Nanoceramic dielectric with exceptionally high thermal conductivity. This thermal performance helps keep LED die temperatures low ensuring longer lifetime and better colour rendering by removing excess heat as efficiently as possible.<br /><br />The new product is based on...
Guinea to beat Australia as top bauxite supplier to China by 2017
<p>Experts predict that Guinea will replace Australia as China’s top bauxite supplier by 2017, China’s Ministry of Finance said on its website on July 22. <br /><br />Bauxite output in Guinea totaled some 19 million tonnes in 2015 and is expected to reach 28 million tonnes by 2016. The figure is likely to hit 66 million tonnes by 2018 along with expansions at CBG and commencement of GAC, COBAD and ALUFER, according to the Ministry of Mines and Geology of the Republic of Guinea. <br /><br />China Winning Group, a consortium jointly invested by Singapore’s Winning International Group, China’s Yantai Port Group, China’s Shandong Hongqiao Group, and Guinea’s United Mining Supply (UMS), established Société Minière de...
India major aluminium scrap prices down in line with aluminium futures
<p>India major aluminium scrap commodities prices declined on Tuesday in line with aluminium futures prices at Multi Commodity Exchange tracking LME Three-month aluminium which closed down 0.6 percent at $1,625 as recent US data suggests tepid economic growth, slowing manufacturing activity and subdued inflation.<br /><br />The major aluminium scrap commodities showed a down trend during Tuesday. India's major scrap commodities like aluminium accessories scrap, aluminium cable scrap , aluminium ingots, aluminium scrap 6063, aluminium scrap taint/tabor, aluminium sheet cutting, aluminium utensil scrap, aluminium wire scrap traded lower on Tuesday.<br /><br />The most active August aluminium contract on Multi Commodity Exchange settled slightly up by 0.5 per cent to INR...
Chinese aluminium smelter remain in profit territory, despite higher costs
<p>Aluminium smelters in China posted big profit in July, despite rising costs, SMM learned.<br /><br />Smelters surveyed by SMM reported average profit to 1,250 yuan per tonne in the week ending July 29.<br /><br />Average cost at smelters in SMM’s survey sample rose 2.1 per cent from June to 10,752 yuan per tonne in July, driven mainly by an 8.33 per cent increase in power costs. Rising coal prices pushed up captive power costs at smelters. <br /><br />Alumina cost slid 1.63 per cent, while prebaked anode cost was up 1.24 per cent, and cost for other supplementary materials dropped 2.84 per cent.</p>
Shandong boasts as China top alumina producing region in H1 2016
<p>Shandong province took crown as China’s top producing region of alumina , aluminium and aluminium semis in the first half of the year, reported industry sources, citing Henan Nonferrous Metals Industry Bulletin. <br /><br />Alumina output at top five provinces totaled 27.27 million tonnes, 96.63 per cent of national total. The table below shows the details: <br /><br />Unit: tonne<br /><br />Alumina Output by Region<br /><br /></p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Alumina%204.8.16.jpg" alt="News" width="327" height="242" /></p>
Asia alumina: Australia range-bound despite stronger LME aluminium
<p>The Platts Australian alumina daily assessment at $234/mt FOB on Monday was unchanged from Friday, despite a steep rise in LME aluminium in the last two days.<br /><br />There have been rumblings of renewed interest in China for October shipments, with buyers guidance at $235-$240/mt CIF Lianyungang/China main port.<br /><br />Chinese smelters sometimes stock up on alumina during the fourth quarter ahead of the peak winter conditions, when blizzards and blustery winds have been known to slow down the rail network. However the seasonal restocking does not occur faithfully every year, depending instead on market fundamentals.<br /><br />On Monday, a Chinese smelter said it was not unreasonable for Australian material to fetch Yuan 200/mt or $30/mt more than China domestic supply, in...
Aluminium consolidating recent gains; prices encountered resistance at $1,638
<p>Aluminium is consolidating, having failed to find follow-through buying momentum above $1,640 yesterday, as implied by the long upper shadow.<br /><br />Prices have encountered resistance from the 20 DMA at $1,638 but are so far holding support at $1,630 from the 40 DMA and the UTL formed by January/February/June lows. Resistance above is seen at $1,660/1,700. The stochastics remain supportive. Support below is seen at the 55 and 100 DMAs at $1,608 and 1,586 respectively. There remains room back to $1,520 to maintain the overall uptrend established so far this year.<br /><br />Macro factors<br /><br />LME stocks remain down a net 595,750 tonnes or 21 percent so far this year despite recent inbound deliveries. The c-3m spread stands at $9.5 contango. Longer-dated spreads have tightened...
Alufoil Trophy China: New competition in China for excellence
<p>The Global Aluminium Foil Roller Initiative (GLAFRI) has announced the launch of a Chinese version of the well-established and highly respected Alufoil Trophy competition at ALUMINIUM CHINA. The new event will recognise excellence in aluminium foil in five different categories.<br /><br />Alufoil Trophy China will be open to Chinese packaging designers, brand owners, foil rollers, foil converters, foil container manufacturers, closure manufacturers, household foil manufacturers, retailers, and industrial solution providers; including combined entries from any of these disciplines. Packs or applications entered must be designed, produced, filled or sold in China.<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;"...
Alba awards GE and GAMA consortium as power station 5 EPC contractor
<p>Aluminium Bahrain B.S.C. (Alba), home-base of the Line 6 Expansion Project, has awarded GE and GAMA Consortium the Engineering, Procurement and Construction (EPC) contractor for its Power Station (PS 5).<br /><br />Under the terms of the contract, GE and GAMA Consortium will be responsible to design, engineer, procure, construct and commission 1,792 megawatts (MW) Combined Cycle Gas Turbine Power Plant with an efficiency of 54%. GE will provide three 9HA gas turbines, three steam turbines and three high recovery steam generators (HRSGs) for the project.<br /><br />Commenting on this appointment, Alba’s Chairman of Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa said: “The appointment of GE and GAMA Consortium is another significant milestone in Line 6...
CBIX dropped 2.8% (US$1.4/dmt) last week of July, closing at US$48.1/dmt
<p>CBIX dropped 2.8 per cent (US$1.4/dmt), closing at US$48.1/dmt for the week due to two lower ViU cargos from Malaysia re-entering the Chinese market. This is despite a further extension of the Malaysian mining ban, by two months, to September 15th.<br /><br />Malaysian FOB prices remain unchanged at US$26/dmt (non-ViU) for unwashed material. Prices for washed material are approximately US$37/dmt FOB (non-ViU). Rationale for the mining ban extension is the export of all existing stocks (port and mines) and the clearing of stockpile areas outside the Kuantan port area, before normal mining and export arrangements can resume.<br /><br /><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/Bauxite%20Index.png" alt="News" width="688" height="468" /><br /><br />In...
Bristol unveils the Bristol Bullet, its new sports car with an aluminium chassis
<p>British carmaker Bristol has recently unveiled its new sports car, the Bristol Bullet. Powered by a 370bhp 4.8-litre V8, this swanky sports car will mark the 70thanniversary of Bristol. The sales are expected to begin by the end of 2016. <br /><br />Each speedster is hand-made over two weeks at the company’s factory in Chichester, Hampshire, and will only be sold through Bristol’s iconic dealer in Kensington.</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/bullet1.jpg" alt="News" width="512" height="341" /><br /><br />The main chassis of the Bullet is made of bonded aluminium to maintain its superlight structure and the retro bodywork of the car is crafted from carbon-fibre....
Demand for packaged beverages to drive market for aluminium-coated liquid packaging cartons
<p>According to a recent market report published by Persistence Market Research on global market for packaging cartons, the revenue generated from sales of liquid packaging carton market has been estimated to be valued over US$ 12.0 billion by 2016 end, and is projected to increase at a CAGR of 5.5 per cent during 2016-2024. The consumption of aluminium in this packaging segment is also slated for a significant rise. <br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Liquid%20Packaging%20Cartons.jpg" alt="News" width="350" height="343" /><br /><br />Liquid Packaging Cartons are primarily made up of uncoated paperboard with a barrier coating. There are two types of barrier coating i.e. LDPE...
