A should-cost analysis of an aluminium tower furnace in India: Comparing the economics of LPG, PNG, and electric energy sources
In precision non-ferrous casting and high-volume die-casting operations, thermal energy conversion represents one of the largest controllable operating expenses. In modern aluminium foundries, where margins are squeezed by primary metal price fluctuations and stringent customer cost breakdowns, even a modest INR 1–2/kg variance in liquid metal melting cost can translate into tens of lakhs of rupees in annual cost differences. A rigorous, transparent should-cost benchmark is therefore essential for procurement teams, foundry managers and strategic sourcing leaders. This analysis examines a baseline should-cost model for a 1,000 kg/hour aluminium shaft or tower furnace in an industrial foundry. It compares liquefied petroleum gas (LPG), piped natural gas (PNG) and electric energy across...
Germany’s construction aluminium demand falls 12%, but 2027 recovery and recycling offer fresh growth prospects
Germany’s construction industry has endured several years of contraction, weighed down by elevated financing costs, expensive building materials and subdued residential investment. The downturn has also affected the country’s aluminium industry, with estimated construction-related aluminium consumption declining by around 12 per cent between 2022 and 2025. However, the outlook is beginning to change. With Germany’s construction industry projected to return to growth in 2026 and accelerate further in 2027, opportunities are emerging for aluminium suppliers across residential construction, transport infrastructure, energy networks and commercial developments. At the same time, efforts to strengthen closed-loop aluminium recycling in buildings could provide an additional avenue for growth....
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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...
What’s key to Chalco’s loss reversal in H1 2016? - An SMM insight
Chalco reversed losses and reported big profit in H1 2016 when many of its competitors were still struggling with meager profit. So, what’s the secret behind the great success? Aluminium, alumina and refined copper costs fell by 400 yuan/tonne, 2,500 yuan/tonne and 5,200 yuan/tonne, respectively, from a year ago, Chalco general manager Yu Dehui said at the semiannual meeting, the main reason behind profit. Chalco shut down outdated aluminium capacity last year, and efficient capacity from Huaxing Aluminium and Huajin Aluminium, etc., was released. This also helped improve Chalco’s competitiveness. It’s worth noting that Chalco has made great progress in aluminium processing segment. The company signed cooperation agreement with famous automakers over R&D in new materials used in...
Global alumina deficit seen at 4 mln mt in 2016, 2017 by Australia’s DIIS
Australia’s Department of Industry, Innovation & Science has projected global alumina deficits of 4 million mt in 2016 and 2017. Global consumption in 2016 is anticipated to rise 3 per cent year on year to 116 million mt and production to rise 3 per cent to 112 million mt, the DIIS said Friday (June 8) in a report. The office anticipates global alumina consumption rising 7 per cent in 2017 to 125 million mt, supported by higher aluminum output in China, Russia and the Middle East. It said global alumina production is anticipated to increase by 7 per cent to nearly 121 million mt, driven by capacity restarts in China and new output in Jamaica, India, Indonesia, Vietnam and the UAE. The DIIS said it would expect the price of alumina to average $238/mt FOB Australia in 2016, rising to...
Australia’s Iron Mountain announces significant bauxite find in Solomons
Australian miner Iron Mountain Mining Limited announced late last week that it has discovered “extensive large-scale” deposits of bauxite in the Solomon Islands. The firm made the discovery in the course of its exploration at the Nendo Bauxite Project in Temotu Province. According to the firm, the results of a comprehensive auger drilling and pit sampling program show an outcropping of high-quality bauxite in an area 7-1/2 miles by 1-1/4 mile, but the outcropping could extend further to the east pending the results of further testing. The quality of the samples is consistent, the firm goes on, and is highly pure, lacking a significant amount of impurities and radioactive silica. As a result, the firm says that there is a good chance that there are large areas of high-grade direct shipping...
Metro Mining secures $8.9 mln for Bauxite Hills Project
Greenstone Resources, a specialist mining and metals private equity fund based in the Channel Islands, has agreed to provide a major financial injection to Metro Mining’s flagship Bauxite Hills Project, near Weipa. In an ASX announcement today, Metro Mining confirmed the signing of definitive and binding agreements with Greenstone to invest $8.9 million in Metro via a two tranche placement of 105 million shares at 8.5 cents per share. This represents a 26 per cent premium to the last closing price of Metro shares. The initial Placement, which does not require Metro shareholder approval, will raise $8.058 million via the issue of 94.8 million shares. A second tranche, requiring shareholder approval, will raise $0.867 million via the issue of 10.2 million shares. Greenstone will become a...
