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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India major aluminium scrap prices show flat trend; aluminium futures down
<p>India major aluminium scrap commodities prices showed a flat trend on Wednesday, while aluminium futures prices at Multi Commodity Exchange ended down in the line of expectation tracking weakness from LME Aluminium which sank to its lowest in six weeks in yesterday's session on persistent worries about oversupply from Chinese smelters.<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 ingots, aluminium rod company, aluminium rod local, aluminium scrap 6063 and aluminium scrap taint/tabor remained flat on Wednesday.<br /><br />The most active July aluminium contract on Multi Commodity Exchange...
IronRidge says new bauxite resource has big potential
<p>IronRidge Resources has unveiled an initial 4.9 million tonne (MT) resource of bauxite at its Monogorilby project in Queensland, Australia.<br /><br />Bauxite is processed to produce aluminium and this maiden resource comes a time when major miners are approving significant long-term project expansions to meet growing demand, the group said.<br /><br />Early test work has shown that good to premium quality DSO (direct shipping ore and the most desirable iron product) could be processed through simple crushing and screening.<br /><br />Meanwhile, a fair quality DSO at 38 per cent mass recovery could also be beneficiated by simple crushing and screening, the mining firm said. The mineralisation is on slopes and atop hills meaning low stripping ratios.<br /><br />Chief executive...
Aluminium stocks in China still in downward track, SMM says
<p>Aluminium stocks in China’s five major markets are still on the decline even after touching 7-year low, SMM data showed. <br /><br />Arrivals remained low, and warehouse withdrawals were relatively strong, SMM learned. Some smelters said there are a large amount of ingots still on the way to south and east China.<br /><br />The table below shows details of aluminium stocks at China’s five major markets:<br /><br />Unit: 1,000 tonne</p> <p><br /><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/China%20Aluminium%20stocks.jpg" alt="News" width="552" height="108" /></p>
SHFE aluminium to swing widely
<p>SHFE 1609 aluminium will swing widely between RMB 12,220-12,420/mt, due to short covering at lows and profit taking by longs at highs. <br /><br />LME aluminium will move at USD 1,600-1,615/mt. <br /><br />In east China’s spot aluminium market, spot premiums of RMB 160-200/mt are expected over SHFE 1608 aluminium contract.<br /><br /><strong>Key macroeconomic indicators for base metal prices</strong><br /><br />The Bank of Japan will announce its interest rate decision today. Base metal volatility will rise today.<br /><br />Germany’s flash July CPI improved noticeably, with growth the most significant over the past month. But eurozone July expected inflation slid from June, while expected PPI also fell. As such, eurozone July’s flash CPI will unlikely improve...
Orbite announces HPA update and Second Quarter 2016 results
<p>Orbite Technologies Inc. yesterday filed its financial statements for the second quarter ended June 30th, 2016. The company reported a loss before net finance expense and taxes of $1.8 million for the quarter, a decrease from a loss of $3.5 million for the comparable quarter in the prior year, attributable mainly to lower general and administrative expenses, as well as an increase in other income of $1.0 million.<br /><br />As at June 30th, 2016, the company had aggregate cash and short-term investments balance of $5.6 million, and positive working capital (current assets less current liabilities) of $6.4 million. Subsequent to June 30th, 2016, the Company drew the remaining $2.1 million on the $4.9 million 2016 Investissement Quebec ("IQ") bridge loan. As a result, the company has, on...
Building system automation to drive global aluminium market for building and construction
<p>According to Technavio’s recently published market report, the global aluminium market for building and construction sector is slated to grow at a CAGR of 6.31 per cent during the period 2016-2020.<br /><br />Analysts have segmented the worldwide aluminium market for building and construction into four major geographies: Americas, APAC, Europe, and Middle East. Continuous infrastructural development in these regions will likely drive the demand for aluminium structural components in the building and construction sector, they opined. The demand will be further augmented by infrastructure overhaul projects in the emerging economies like India, Malaysia etc.</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;"...
Indian tech startup's new Able 10 tablet comes with a keyboard made from aluminium
<p>Indian tech startup Notion Ink has launched their latest offering the Able 10, a successor to the Cain tablet, with an upgraded keyboard built out of aluminium. <br /><br />The electronic devices segment has been experiencing a continued decline in shipments over the last few quarters, the world over; yet, the 2-in-1 segment has charted growth. Piggybacking this trend, tech firms have been penetrating newer markets with devices in all possible shapes and forms. <br /><br /><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/notion-ink-able-lede.jpg" alt="News" width="1200" height="900" /><br /><br />Notion Ink’s latest offering- the Able 10 tablet with aluminium lightweight key is targeted to a global audience looking for devices that make working on...
SHFE 1609 aluminium falls on short selling
<p>On Monday’s night trading, SHFE 1609 aluminium fell to RMB 12,140/mt after opening at RMB 12,175/mt. Prices then rallied to RMB 12,205/mt, closing at RMB 12,200/mt. <br /><br />On Tuesday, short selling sent the most active contract down to RMB 12,115/mt after starting at RMB 12,195/mt. Finally, the contract ended at RMB 12,120/mt. Trading volumes were down 57,460 lots to 86,604 lots, and positions were down 1,404 to 181,170. <br /><br />Short selling was reported once prices climbed to near the daily moving average. SHFE 1609 aluminium will test support at RMB 12,000/mt.</p>
New LIBS sorting system developed for aluminium and other non-aluminium metals recycling
<p>SMEs and research organisations in the EU-funded SHREDDERSORT project have developed and demonstrated a new industrial sorting system to separate non-ferrous shredder scrap into cast aluminium (Al), wrought Al, and non-Al categories. Compared to the unsorted material, the sorted categories are better suited for recycling into secondary metals, have a higher market value, and will reduce the use of raw materials.<br /><br />End-of-life vehicles (ELV) generate around 10 million tonnes of waste per year in the EU. Around 75% of this waste is currently recycled or recovered, but this level still falls short of the 95 per cent target set by the European ELV Directive - 2000/53/EC.<br /><br />The initial processing is of ELV metal scrap is carried out in shredder plants which chop the...
Aluminium processing capacity in Henan hit by environmental protections upgrade
<p>Aluminium processing capacity in Henan, one of China’s major aluminium processing regions, will be hit by tough environmental protections, SMM learned. <br /><br />Aluminium processors in the province are required to upgrade coal-fired facilities into gas-fired ones out of environmental concerns. This move will affect local aluminium processing capacity by over 500,000-tpy, SMM estimates.</p>
India major aluminium scrap prices remain stable; MCX aluminium slightly up
<p>India major aluminium scrap commodities prices remained stable on Friday, while aluminium futures prices at Multi Commodity Exchange settled up as industrial consumers took advantage of recent declines to make purchases.<br /><br />The major aluminium scrap commodities showed a flat trend during Friday. India's major scrap commodities like aluminium cable scrap, aluminium ingots, aluminium rod company, aluminium rod local, aluminium scrap 6063, aluminium scrap taint/tabor, aluminium sheet cutting, aluminium utensil scrap and aluminium wire scrap remained stable on Friday.<br /><br />The most active July aluminium contract on Multi Commodity Exchange settled slightly up by 0.56 per cent to INR 107.45 per kilogram on Friday from previous close of INR 106.85 per kilogram. The MXC...
About 32% Chinese aluminium smelters see aluminium prices fall this week
<p>SMM surveyed 44 Chinese aluminium smelters about their opinions over aluminium price outlook.<br /><br />About 32 per cent of them expect SHFE 1609 aluminium to fall below RMB 12,450/mt and LME aluminium below USD 1,600/mt, citing 4 reasons. First, many aluminium processors in Inner Mongolia and Henan shut down for rectifications because of environmental protection crackdowns, which will reduce aluminium demand. Second, July is the traditional off-season, with orders down significantly at aluminium processors. Third, output release from aluminium capacity restarted in April will add to market supply. Fourth, CFTC data showed net long positions of the US dollar hit one-year high. Strong dollar, plus weak crude oil, will pressure metals prices. <br /><br />Another 57 per cent...
Bauxite prices CIF China up by 0.3% over the week ending 22 July closing at US$49.5/dmt
<p>CBIX steady Value-In-Use adjusted bauxite prices CIF China rose marginally over the week, up by 0.3 per cent (US$0.2/dmt), closing at US$49.5/dmt. Prices for bauxite originating from Australia’s Gove mine pulled back slightly, offset by higher priced material from Weipa and Brazil. Malaysian FOB prices were unchanged at US$26/dmt for unwashed material, although Malaysian volumes remain well down on their peaks from earlier this year. We expect to see more cargos arriving in China from Malaysia now that larger miners have resumed mining operations in Kuantan.<br /><br />Chinese domestic alumina prices fell further last week, with the North down 1.6 per cent (RMB27/t) to RMB1,713/t (US$256/t including VAT) while the South was down 1.1 per cent (RMB20/t) to RMB1,800/t (US$269/t...
China aluminium stocks to see turning point falling after hitting 7-year low
<p>Aluminium stocks in China’s five major markets continued falling after hitting their lowest in seven years, but a turning point is in sight, SMM understands.<br /><br />Heavy rains along the middle and lower reaches of the Yangtze River earlier are leaving some ingots still on the way, preventing arrivals from picking up noticeably, SMM learned.<br /><br />While rains have slowed down transport, more ingots will arrive once transport fully recovers. Aluminium consumption is unlikely to pick up markedly in the short term. As such, total aluminium stocks in domestic five major markets will begin to see a turning point for the foreseeable future, SMM predicts.<br /><br />The table below shows details of aluminium stocks at China’s five major markets:<br /><br /><img...
Pittsburgh University scientists to study aluminium alloy microstructures formation in real time
<p>A grant from the National Science Foundation will enable researchers at the University of Pittsburgh to utilize a one-of-a-kind transmission electron microscope developed at Lawrence Livermore National Laboratory to examine in real time how microstructures form in metals and alloys as they solidify after laser beam melting. The researchers will study rapid solidification processes in aluminium alloys that are associated with laser or electron beam processing technologies used in welding, joining and additive manufacturing.<br /><br />The proposal, "In-situ transmission electron microscopy of microstructure formation during laser irradiation induced irreversible transformations in metals and alloys" was awarded a three-year, $503,435 grant from the NSF Division of Materials Research....
China alumina output to continue growing in July, SMM expects
<p>China’s alumina output will rise further in July due to release from new and restarted capacity, SMM predicts. <br /><br />Shandong Weiqiao Group’s 1 million-tpy new alumina project will begin to release output in late July. The rest of the year will see limited additional new capacities coming online, according to SMM survey. <br /><br />SMM data showed China’s alumina output was 4.86 million tonnes in June, up 0.31% from May and 2.99 per cent from a year ago.</p>
Chalco cuts aluminium prices in major markets for seven consecutive days on July 21
<p>China Aluminum International Trading Co. (Chalco Trading) further cut aluminium prices in major markets today, marking its 7th consecutive day of cuts, it said on its WeChat. <br /><br />For details, please see the table below: <br /><br />Unit: yuan/tonne<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Chalco22072016.jpg" alt="News" width="347" height="107" /> <br /><br />Note: Chalco Trading is a full subsidiary under Chalco responsible for alumina and aluminium sales.</p>
Stronger China leads Norsk Hydro to up aluminium demand forecast
<p>Strengthening Chinese demand led Norsk Hydro, one of the world's largest aluminium producers, to raise its forecast for global aluminium demand growth this year to 4-5 percent as it reported forecast-beating earnings on Thursday. The company's global aluminium demand forecast, revised up from 3-4 percent, is now closer to peer Alcoa's forecast of 5 percent.<br /><br />Norsk Hydro said it saw stronger Chinese economic activity than previously anticipated and now expected aluminium demand in the country to grow 5-7 percent in 2016, up from a previous forecast of 3-5 percent.<br /><br />"(In China) we see aluminium moving into infrastructure, but also very much into building and construction," Chief Executive Svein Richard Brandtzaeg said while presenting second-quarter results.<br /><br...
