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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SMM: Wait-and-see sentiment to prevail in SHFE aluminium market
SHFE 1609 aluminium will move at RMB 12,550-12,750/mt today, with strong wait-and-see sentiment. LME aluminium will hold above the 5-day moving average, with price range at USD 1,665-1,690/mt. In China’s spot aluminium market, spot discounts of RMB 0-10/mt and premiums of RMB 0-30/mt are expected over SHFE 1607 aluminium contract. Key macroeconomic indicators for base metal prices Market will eye US June PPI and last week’s initial jobless claims today, as well as policy decision for the BOE’s July meeting. US import & export price index was mild in June, meaning low possibility of improvement for US inflation in June. Annual rate of US PPI remained low in June. US initial jobless claims remained below 300,000 last week. The US Fed’s Beige Book showed positive outlook for overall US...
Aluminium price rebound is here to stay, says NALCO CMD
Aluminium is currently moving in the range of USD 1,620-1,650 per tonne range. In the first quarter of the current fiscal, aluminium price was average around USD 1,514 per tonne. In the second quarter, it climbed up to USD 1,576 per tonne average during that quarter. Right now in July, last 12 days, average is moving out to USD 1,623 per tonne. So, there is a little forming of the price of London Metal Exchange (LME) during this time. While talking about the current aluminium and alumina price scenario in an recent interview with a leading television channel, TK Chand, CMD of Nalco, said, this price movement is mainly because in second quarter, the consumption of aluminium metal was around 15.39 million tonnes and production was around 14.58 million tonnes, leaving a deficit of 0.8...
Kemet Corporation New (KEM) hits new 52-week high in July
Kemet Corporation New (KEM) hit a new 52-week high yesterday, reaching a peak of $3.18 after opening at $2.98 and closing at $3.17 for a move of 6.02 per cent. Kemet Corp is a manufacturer of capacitors. Its product offerings include tantalum capacitors, multilayer ceramic capacitors, film capacitors, electrolytic capacitors, paper capacitors and solid aluminium capacitors. Hitting a new 52-week high is a notable milestone for any company, and it can mean a trading opportunity on either the long or short side, depending on one's perspective. Some view a company hitting its highest price in a year as a sign of momentum and think it means it's time to buy in. Others, though, tend to interpret a new 52-week high as likely signalling the end of a strong run, with the stock peaking out before...
MSETCL plans for Aluminum Conductor Composite Core (ACCC) wires around India's Nashik
The Maharashtra State Electricity Transmission Company Limited (MSETCL) has planned for high ampacity power supply through cables having aluminium composite core around India’s Nashik city connecting seven of its 132 kv power stations to deliver quality power to the citizens. The decision follows major power outages in the city which has already taken off as a major business hub of the country. MSETCL has successfully tested the use of the high ampacity cables for transmission of 1,32,000 volt (132 kv) power lines between Eklahara (Nashik Thermal Power Station) and Ozhar sub-stations. After that, it has been updating its transmission lines using the technology. "The high ampacity cables will be able to withhold exta load and would not lead to such a situation (power failure)," a senior...
July aluminium price forecast: Watch out for pound depreciation
Spot aluminium prices on the European market traded slightly lower last week as worries over Brexit and its impact on future demand influenced buyers. Wrote Donald Levit of Economic Calendar: “While there is not expected to be a huge shift in aluminium demand as the U.K. slowly decouples itself from the European Union, a general air of uncertainty is pressuring the sentiment around aluminium demand and prices are responding by dropping slightly.” Levit added that Brexit is not expected to have a sudden impact on demand for aluminium but prices for the metal could fluctuate as the result of currency valuations. Forecasts currently call for a depreciation of the pound, but other factors stemming from Brexit — including slow economic growth and lagging U.K. vehicle sales — could team up to...
HH Aluminium fabricates and installs doors for Alpro's overhead transom closures
Alpro’s overhead transom closers are a means of hydraulically controlling the opening and closing of an aluminium door. The units are on doors fabricated and installed by HH Aluminium of Southampton. These transom closers are contained within the transom header bar of a door and are therefore well suited to use in premises where attention is being paid to aesthetics. Features include dual closing speed to allow flexibility, three levels of spring strength and 90-degree hold open facility. Keith Parry, Sales Director at Alpro, said: “Fabricators using our transom closers benefit from the ability to adjust the latching and closing force according to the weight and height of individual doors as well as type and frequency of usage. Fine-tuning to accommodate the exact needs of a pupil and...
EBRD grants Aluflexpack a $22mln loan to finance aluminium packaging & printing technology
Aluminium flexible packaging solutions manufacturer Aluflexpack has been granted a loan of €20 million (USD 22 million) by the European Bank for Reconstruction and Development to finance technology upgrades at its Croatian firm. Aluflexpack specializes in manufacturing containers, closures and lids, and other aluminium products. Technology upgradation which forms an integral part of Aluflexpack’s recent strategic expansion plans would enable the company to develop new products and increase production capacity significantly. Aluflexpack approached EBRD for the loan based on ‘demonstration of successful restricting and setting standards of corporate governance and business conduct.’ EBRD, in response, outlined the following conditions: • Environment and Social (E&S) issues associated with...
UC Rusal teams with Sauer to develop aluminium 3D printing technology
Russian aluminum expert UC Rusal has announced that they will be working with German machine tool developer Sauer GmbH to pioneer new aluminum 3D printing powders and solutions. Sauer is actually part of German firm DMG Mori AKTIENGESELLSCHAFT – a manufacturer of metal cutting tools that is currently paving the way in subtractive metal processing and additive metal 3D printing. Just a few months ago, DMG Mori revealed that they had begun using a LASERTEC hybrid 3D printer and CNC mill to produce parts for Porsche racing cars. The company further revealed that metal 3D printing is rapidly becoming a core part of the DMG Mori enterprise, both creatively and financially. In 2015, the company’s additive manufacturing products and services resulted in a turnover of 70 million euros, a figure...
Alcoa reports net income of $135 mln, revenue declines due to closed operations
Leading aluminium maker Alcoa reported its second quarter 2016 results on July11 2016. The company has separated its upstream and downstream business and the process is going to be complete by H2 2016. The separation seems promising for the company as its Arconic (Value-Add) segments grew year-over-year significantly and Alcoa Corporation (upstream) segment grew sequentially. Highlights: • Reported net income of $135 million and adjusted net income of $213 million excluding special items • Revenue of $5.3 billion, down 10 per cent from the same period of 2015 • 4 per cent rise in revenue from recent growth & acquisitions but offset by a 14 percent revenue decline • Announced sales of non-essential assets expected to generate a cash of $1.2 billion during 2016 • cash on hand $1.9 billion •...
Alumina production steady but returns slide
Alumina says production at its AWAC joint venture with Alcoa held steady through the second quarter, with its returns falling despite improved margins. The ASX-listed Alumina (AWC) said AWAC production came in at 3.2 million tonnes, exactly in line with first quarter numbers. Its total dividends and capital returns from the joint venture fell, however, to $34.3 million, from $49.4m in the prior quarter. The slide in returns was likely linked to the final instalment of a WA gas prepayment, Alcoa numbers suggest, given Alumina said the improvement in margins it had tipped upon the release of first quarter numbers in April had eventuated. “Second quarter margins benefited from higher API prices and further productivity gains as well as the closure of higher cost capacity,” Alumina chief...
Constantia completes acquisition of Vietnamese aluminium blister foil manufacturer
Constantia Flexibles has completed its acquisition of Vietnamese pharmaceutical packaging manufacturer Oai Hung, strengthening its presence in Asia. Headquartered in Ho Chi Minh City, Oai Hung produces aluminium blister foil and rigid film for the growing local pharmaceutical market. In addition, the company already has a meaningful presence in the dairy lidding sector having only entered this market in the last two years. The state-of-the-art production site is equipped with a cleanroom that meets high international standards. The Pharma division of Constantia Flexibles is the world’s second largest flexible packaging manufacturer for the pharmaceutical and home and personal care industries. It operates three pre-material production sites in Austria, Germany and Spain, which serve three...
Canyon launches Roadlite- an aluminium-framed drop bar road bike
Canyon Bicycles has launched the revamped Roadlite flat bar road bike, built on all aluminium frame, with the increased accessibility of flat handlebars, that the company says makes this the ideal bike for “a day-to-day ride or a new way to explore at the weekend.” The Roadlite name used to be found on an aluminium-framed drop bar road bike in the Canyon range a few years ago, but it’s now repositioned as a fitness bike in the company’s growing range, or what we would normally call a hybrid bike. We can definitely see the Roadlite appealing to people that might be keen to get into road cycling but are put off by the drop handlebars, and it would make an ideal commuting bike with the easier control the flat bars provide when weaving through traffic. “Whether you cycle as part of your...
Joondalup city centre's new skyscraper features perforated aluminium panels
The city of Joondalup in western Australia has a new eight-storey development added to its skyline that stands out both in terms of design and the built. The exterior design by Meyer Shircore and Associates Architects features perforated triangular aluminium panels arranged in a tessellated origami pattern, aluminium cladding with a timber finish, clear glazing and patterned concrete walls. The North West Metro Development Assessment Panel supported plans for the proposed multi-storey Government office building at the corner of Davidson Terrace and Shenton Avenue. The skyscraper featuring perforated aluminium panels will consist of five levels of office space, two levels of car parking and a ground level café and commercial tenancy. The development proposal has achieved a five-star rating...
Gränges wins auction in process to acquire aluminium business in the US
Gränges AB has emerged as the winner in the court supervised auction to acquire Noranda Aluminum Holding Corporation’s downstream aluminium rolling business in the United States. The final bid values the business and related assets to USD 324.2 million on a cash and debt free basis (Enterprise Value). The transaction is anticipated to be accretive to Gränges earnings per share in 2016. Gränges and Noranda have obtained required clearances for the transaction under US antitrust laws and Gränges has secured committed bank financing for the transaction. Gränges' Board of Directors may also consider to utilize the mandate given by the Annual General Meeting 2016, which entitles the company to issue new shares in Gränges up to 10 per cent of the total number of shares outstanding. Should...
Rising demand for lightweight vehicles to drive global automotive aluminium market until 2020
According to a recently published market report, the global aluminium market for the automotive industry is expected to grow at a CAGR of 4.5 per cent during 2016-2020. “With the developing transport and aircraft sector, aluminium's presence in the market is increasing due to its efficiency, cost effectiveness, sustainability, safety, durability, and performance. The growing demand for energy-efficient lightweight vehicles will also augment the growth of the global aluminium market for the automotive industry over the next four years,” says Chandrakumar Badala Jaganathan, a lead analyst at Technavio for research on metals and minerals. Based on type, the report categorizes the global aluminium market for the automotive industry into three major segments: Castings and forgings, Extrusion,...
Alcoa set to leverage its 3D printing expertise for the aerospace industry
“Airframe and Engine OEMs—bring your challenges to us. We have the material expertise, resources and the personnel to ‘crack the code,’” promised Alcoa executive Eric Roegner. The senior executive was addressing an industrial gathering at the Farnborough International Airshow with the U.S. company’s management team. Late last month during a media event at the Alcoa Technology Center in New Kensington, Pennsylvania, just outside Pittsburgh, Roegner told reporters, “We’re truly material agnostic.” Kicking off the event, Ray Kilmer, executive VP and chief technology officer at Alcoa, pointed out the ubiquity of Alcoa’s expertise on lightweight metals and other materials. “If it moves, we’re on it,” he boasted, adding that Alcoa products are found not only in structures, but engines as well,...
SHFE aluminium to gather rising strength
Big possibility of short squeeze will push SHFE 1609 aluminium up to RMB 16,520-16,700/mt on Monday, June 11. The US dollar gained favor as US non-farm payrolls hit 8-month high in June. But strong dollar will have little impact on LME aluminium. LME aluminium will move at USD 1,650-1,675/mt. In China’s spot aluminium market, spot premiums of RMB 30-70/mt are expected over SHFE 1607 aluminium contract. Key Macroeconomic Indicators for Base Metal Prices Market attention will focus on China Q2 economic data, the Bank of England (BOE)’s July policy meeting, as well as June US non-farm payrolls this week. Base metals saw big volatility in recent two weeks. Market sentiment has turned from expectations for global monetary stimulus following the UK’s decision to leave the EU to concerns over...
Alcoa’s Q2 earnings, revenue expected down YoY
Alcoa is expected to report year-over-year declines in second-quarter earnings and revenue when the metals company releases the figures Monday afternoon. The company, whose report unofficially kicks off the second-quarter reporting season, is expected to post quarterly earnings of $0.10 per share, down from $0.19 per share in the year-earlier period, according to analysts polled by Capital IQ. The analysts are predicting a drop in revenue as well, to $5.21 billion from $5.90 billion a year earlier. Brokerage RBC Capital Markets, however, has Alcoa’s second-quarter earnings pegged at $0.09, up slightly from the first quarter’s adjusted profit of $0.07 per share due to higher alumina and aluminium prices as well as positive improvements in the downstream business. The firm said it expects...
