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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Operating costs at bauxite mines driven down by falling fuel prices and strong US dollar
The world average bauxite mine site cost fell for the third consecutive year in 2015, decreasing by 8.0 per cent. The strong US dollar and weak energy prices have been the key drivers of cost deflation in the bauxite mining industry. As most of the revenues for third party bauxite mining companies are in US dollars while costs are in domestic currencies, any depreciation in domestic currency offers a cushion to companies in terms of cost benefits. Bauxite miners have also benefited from weak energy prices, which have lowered their operating costs. Strong US dollar has a great impact on bauxite mining site costs Exchange rates have a great impact on labour costs, which was the largest cost component of bauxite mining costs in 2015, accounting for 24.1 per cent of the world average site...
China builds world’s most powerful radio telescope with 4,450 triangular aluminium panels
China has built the world’s most powerful and the largest single aperture radio telescope in the southwestern province of Guizhou in expectation of an “extraordinary impact” on astronomy. Made up of 4,450 triangular aluminium panels, the $180m telescope’s dish is half a kilometre in diameter, with a total area equivalent in size to 30 football pitches. It is located in a remote limestone valley in Pingtang County to minimise electromagnetic “noise” from human activity – an important factor in the sensitivity of the instrument, which is known as FAST (an acronym for “Five-hundred-metre Aperture Spherical radio Telescope”). The aluminium panels of the radio telescope are capable of being adjusted to create a 300m sub-dish that can be focused on particular bits of the universe with 10 times...
Transportation and environmental leaders discuss fuel economy regs
To discuss critical issues surrounding the upcoming Midterm Evaluation of 2025 fuel economy and emissions regulations, former U.S. Transportation Secretary Ray LaHood, Aluminum Transportation Group chairman Tom Boney of Novelis, and the following panellists of transportation and environmental leaders gathered in Washington, D.C. last Thursday, June 7: • John Bozzella, President and Chief Executive Officer, Global Automakers • Michelle Robinson, Director, Clean Vehicles Program, Union of Concerned Scientists • John German, Senior Fellow / US Co-Lead, The International Council on Clean Transportation Lively discussion ensued on whether automakers can meet (or possibly exceed) 2025 fuel economy and emissions targets as well as how existing vehicle technologies and designs are advancing. "No...
AEC joins U.S. manufacturers’ coalition opposed to granting China market economy status
The Aluminum Extruders Council (AEC), has joined Manufacturers for Trade Enforcement, a coalition of leading U.S. industry trade groups opposed to the automatic granting of market economy status for China at the end of 2016. AEC joins The Aluminum Association, American Iron & Steel Institute, Metals Service Center Institute, Forging Industry Association, and more than a 15 other groups, together directly employing more than 1 million American workers in their collective industries. China has claimed that it should be automatically accorded treatment as if it were a market economy after the 15th anniversary of its accession to the World Trade Organization (WTO) in December 2016. U.S. law requires that the Department of Commerce make a market economy status (MES) determination based on...
LME and SHFE aluminium to post declines
Positive US ADP employment means US non-farm payrolls will not be bad, which will favor the US dollar. This will pile downward pressure on LME aluminium, with prices expected at USD 1,630-1,645/mt. SHFE 1609 aluminium will move at RMB 12,400-12,500/mt. In China’s spot aluminium market, spot premiums of RMB 60-100/mt are expected over SHFE 1607 aluminium contract. On Wednesday’s night trading, SHFE 1609 aluminium rose to RMB 12,625/mt after opening at RMB 12,410/mt, and closed at RMB 12,575/mt. On Thursday, the most active contract sank to RMB 12,390/mt after opening at RMB 12,580/mt due to exit of longs, and finally ended at RMB 12,460/mt. Trading volumes were up 11,108 lots to 279,126 lots, and positions were up 6,526 to 196,612. Key macroeconomic indicators for base metal prices US...
Mining to contribute 1% to India's GDP growth rate, says minister
India's newly elected Minister of State (Independent Charge) for Power, Coal and New & Renewable Energy Piyush Goyal, immediately after taking charge of his portfolio, said he expects the mining sector to contribute one per cent to the country’s GDP growth in the next one to two years. Goyal has also set aggressive targets in Power, Coal and New & Renewable Energy sector. “If we can target 30-40 per cent growth in the mining sector, we can contribute one per cent to the GDP growth rate,” he said. Goyal said he will also have a dialogue with all stakeholders for creating a future roadmap of growth and development in the mining sector. “My primary focus will be for using the resources in the most effective manner,” he added. On the ongoing mining lease auctions, Goyal said, “The mining...
Larson Electronics releases a portable explosion proof spider box
Larson Electronics, a leading industrial lighting company has announced the release of a ten outlet explosion proof portable spider box that allows operators to safely operate up to 4,000 watts of lighting and electrical equipment within Class 1 Division 1 zones. The EPL-SBO-120-10XLV explosion proof portable power distribution system from Larson Electronics is designed to provide operators using 120 volt equipment in hazardous locations with multiple outlets in areas where receptacles are limited. This wheeled power distribution system allows operators to safely operate up to 4,000 watts of lighting and electrical equipment within Class 1 Division 1 areas. This unit includes ten 12 volt twist-lock receptacles rated at 20 amps maximum each. Operators provide 120 volt power from inside or...
Alumina isn’t Port’s business, say analysts
The Port of Corpus Christi had recently announced that it made a bid to buy the Sherwin Alumina plant, which is in bankruptcy. The Port said it offered $33 million for the plant and offered to spend $13 million in capital, deferred maintenance and environmental improvements if Sherwin Alumina or another company continues to operate the plant. However, industry experts are of the opinion that it would be difficult for the Port to carry on with the alumina business. The aluminium processing business is like oil refining. Most of its maintenance and operating cost is fixed costs including capital, labour and energy cost in the form of natural gas and electricity. When the plant has to operate at reduced capacity due to economic recession and low demand, it's impossible to reduce the fixed...
We believe, while ‘one arm’ is in India, we should've ‘another arm’ in Africa: Anil Agarwal, Vedanta
Billionaire Anil Agarwal, the London-based founder chairman of Vedanta Resources, said his group will invest one billion dollars in Africa, betting on the continent and India as the two growth engines for the metals and mining group. "We believe, while 'one arm' is in India, we should have 'another arm' in Africa," Agarwal said in a recent interview. Why Africa? "There are three regions in the world with 1.3 billion people and more. China, India and Africa. What else is left for big business to enter," Agarwal said. Agarwal is betting on the popular estimate that Africa will double its GDP. "In every respect, Africa will grow," he said. The Vedanta group has invested more than $4 billion in Africa so far. The going has been tough in recent years for Vedanta with oil and base metal prices...
Alcoa opens 3D printing metal powder plant
Lightweight metals leader Alcoa has opened its state-of-the-art, 3D printing metal powder production facility. Located at the Alcoa Technology Center, the world’s largest light metals research centre, the Company will produce proprietary titanium, nickel and aluminium powders optimized for 3D printed aerospace parts. Alcoa also has invested in a range of technologies to further develop additive processes, product design and qualification. “Alcoa is forging a leadership path in additive manufacturing with a sharp focus on the critical input material—metal powders,” said Alcoa Chairman and Chief Executive Officer Klaus Kleinfeld. “We are combining our expertise in metallurgy, manufacturing, design and product qualification to push beyond the possibilities of today’s 3D printing technologies...
Chalco hikes aluminium prices in major markets on July 6 after big cuts
China Aluminum International Trading Co. (Chalco Trading) raised aluminium prices in major markets today after yesterday’s deep cut, it said on its WeChat. For details, please see the table below: Unit: yuan/tonne Note: Chalco Trading is a full subsidiary under Chalco responsible for alumina and aluminum sales.
Fresh 2016 price high still on the cards for aluminium
Momentum is holding above 0, suggesting the uptrend remains in place. ADX is above 20, suggesting the trend is strong. Analysis • Aluminium continues higher after finding strong support at its key daily moving averages in June. While it has solid positive momentum, we believe a fresh 2016 high is possible in July. • On the upside, aluminium’s next challenge is to take out its the 2016 high to maintain the upward trend. On the downside, a clear break below the 20 DMA could reflect a negative in swing in sentiment, which in turn would lead to further downside toward the 100 DMA, its UTL and its 2015 low. Macro drivers Aluminium is more volatile but is unchanged since Monday after rising for a fourth straight week last week. The recent consolidation across base metals may stem from resurgent...
Century reaches new market-based power agreement for Mt. Holly Smelter
Century Aluminum Company announced today that it has renegotiated a market-based agreement with a third-party supplier to provide approximately 75 per cent of the power requirements for the Mt. Holly, South Carolina smelter. The remaining 25 per cent of Mt. Holly's power requirement will continue to be supplied by Santee Cooper. The new market-based power agreement will allow Mt. Holly to continue to operate at half capacity while it seeks a competitive long-term arrangement. "We are proud of the team at Mt. Holly, who have operated the plant safely and efficiently during these highly uncertain times," commented Michael Bless, Century's President and CEO. "We have regrettably not been able to achieve an agreement for full market power access; such a structure is required for Mt. Holly's...
U.S. aluminium net shipments in May up 2.4% YoY
Aluminium net shipments (including exports) by domestic U.S. and Canadian facilities totalled an estimated 1,967 million pounds during May, up 2.4 per cent over the May 2015 total of 1,922 million pounds. Shipments of aluminium mill products decreased six-tenths of one percent from the previous year to 1,315 million pounds, while shipments of aluminium ingot for castings, exports and destructive uses increased 8.8 per cent year-over-year, totalling 652 million pounds. Preliminary producer shipments through May 2016 totalled 9,855 million pounds, up 2.7 per cent over the same period last year. May inventory levels totalled an estimated 2,832 million pounds, down 1.3 per cent from the previous month and down 6.5 per cent year-over-year.
Brady provides Aleris with leading Cloud solution for its metal hedging and risk management
Brady plc, the leading supplier of trading and risk management solutions for commodities, energy and recycling, announced today that Aleris has selected Brady’s Cloud-based solution to manage its global metal hedging and risk management, supporting the enterprise’s drive for growth. The Brady solution enables Aleris to consolidate its global metal hedging across its operations in the US, Europe and China. In addition, Aleris is able to centrally manage and analyse its risk exposure and report on the gains/losses of its operations regionally as well as globally. The solution enables month end reporting to be completed in close to real time, which is particularly critical in times of high price volatility. Aleris is a global leader in the manufacture and sale of aluminium rolled products,...
Rolls Royce to make a smooth transition to a futuristic aluminium platform
Iconic limousine maker Rolls Royce is all set to enter the next generation of car manufacturing with modern techniques and lightweight aluminium platform. The upcoming Rolls Royce Phantom and all future super-luxury cars will be made from the same materials as used in Tesla Model S, with a lighter yet durable aluminium chassis and body. The eighth-generation Rolls Royce Phantom will be the first car that the company makes using the new aluminium architecture, and it is known from industry sources that that design has taken “another significant step forward”. The current Phantom will end its production life on 31 December 2016, and the new model won’t be introduced until 2018, so there will be a gap of at least a year where dealers will sell through the existing stock they have on hand....
China Zhongwang puts aluminium flat rolling project on trial
China Zhongwang Holdings has put the first production line of its aluminium flat rolling project in Tianjin on trial production. The project, with designed annual capacity at 1.8 million tonnes, has two production lines and mainly produces aluminium alloy medium-thick plate used in aircrafts, rail cars, ships and commercial vehicles.
SHFE aluminium to move around moving averages
SHFE 1609 aluminium almost lost support at the 5-day moving average as shorts took the upper hand. The contract should move at RMB 12,300-12,500/mt today, hovering around the 5-day and 10-day moving averages. LME aluminium has found strong support and will move at USD 1,640-1,660/mt. In China’s spot aluminium market, spot premiums of RMB 20-60/mt are expected over SHFE 1607 aluminium contract.
