In July 2024, the global aluminium industry experienced a month of significant developments and milestones. Industry leaders celebrated substantial investments in sustainability, with major projects focused on enhancing recycling capacities and reducing carbon footprints. Companies like Speira and RUSAL announced record investments in green technologies, while Porsche's next-generation vehicles prominently featured Hydro REDUXA low-carbon aluminium. Additionally, advancements in industrial technologies, such as Talum's Aluminium 4.0 initiative, underscored the sector's commitment to innovation and environmental responsibility. In spite of a downward trend in aluminium prices on the LME and SHFE platforms, the month concluded with promising collaborations and strategies aimed at improving the sustainability of the aluminium industry.

The major highlights from AL Circle’s point of view are as follows:

The Norwegian aluminium giant Hydro is recognised globally as one of the leading producers of low-carbon aluminium. In a recent collaboration with Porsche (the German sports car manufacturer), Hydro intensified its partnership to decarbonise Porsche's sports car supply chain further. The agreement, signed in Stuttgart on July 9, introduces a pioneering business model for low-carbon aluminium to enhance sustainability and transparency in the automotive industry. The agreement encompasses Hydro REDUXA primary low-carbon aluminium and Hydro CIRCAL 75R recycled aluminium, which contains at least 75 per cent post-consumer scrap.

In April 2023, Hydro and Porsche signed a letter of intent to reduce the carbon footprint of Porsche's car models. Building on this foundation, the companies have now entered into a long-term agreement for Hydro to supply top-tier, low-carbon aluminium for Porsche's vehicle production in the coming years. This agreement includes capacity reservation and product development of low-carbon aluminium, enabling Porsche to increase the use of recycled materials and lower the carbon footprint of aluminium components. These efforts will contribute to achieving a net-carbon-neutral value chain for newly produced vehicles by 2030. Read more...

The Indonesian government plans to ease the bauxite export ban due to slower-than-expected progress in developing domestic alumina refineries. Indonesia ranks among the world's largest bauxite suppliers, with China as a significant consumer. The ban announced by Joko Widodo, the president of Indonesia, on December 20, 2022, to stimulate the growth of its downstream metals sector might be relaxed in the next couple of months, allowing Indonesian bauxite to re-enter the international market by the fourth quarter of the year.

According to the US Geological Survey, Indonesia ranks as the world's sixth-largest producer of bauxite, with reserves amounting to 1 billion tonnes. However, despite this, the country produced only 20 million tonnes of bauxite in 2023. Read more...

In the very recent Science and Technology Award of China Environmental Protection Federation 2023, Chinalco Shandong received prestigious recognition by winning the first prize for its scientific and technological progress in the comprehensive red mud utilisation project "Green Technology and Engineering Demonstration of Efficient Production of New Powder Materials by Bayer Process Red Mud".

Recently, Chinalco Shandong has employed new development concepts to strengthen the research on the comprehensive utilisation of red mud while prioritising ecology. The project "Green Technology and Engineering Demonstration of Efficient Production of New Powder Materials by Bayer Process Red Mud" encompasses a study of the physical and chemical structure of a complex element system of red mud slurry, innovation of technical methods for refining and drying red mud, and finding solutions for the technical problem of "sticking the neck" in the efficient utilisation of red mud. The project has also worked on the innovation and manufacture of products using red mud, giving shape to a red mud-based industry model. Read more...

According to the latest report, Japanese aluminium buyers have agreed to pay an 8 per cent lower premium for primary aluminium shipments for Q3 2024, ending September 30, than the previous quarter. The news came after five sources directly involved in quarterly pricing talks reported. The last offer by global producers for Q3 was $185 to $190 per tonne, compared to which the current premium is 36-37 per cent lower, standing at $118 to $119 per tonne.

As opposed to the previous quarter's premium of $128 per tonne, the third-quarter premium agreed upon is 7.8-7 per cent less, following two-quarters of rising premiums. In Q2 2024, Japan's primary aluminium shipment premium was 35 per cent higher sequentially, while that in Q1 was 27 per cent more. Read more...

The US government has introduced new regulations aimed at companies from China and other nations using Mexico as a conduit to avoid tariffs on aluminium and steel shipments. Under the new rules, these firms must demonstrate the origin of their products if they wish to circumvent border taxes. This initiative, announced by the White House, underscores President Joe Biden's efforts to demonstrate his firm stance on China, particularly in the 2024 presidential election, where he faces competition from his predecessor, Donald Trump. These measures represent an expansion of protections initially implemented by Trump in 2018 under the guise of national security, aimed at safeguarding American steel and aluminium producers and could significantly influence the upcoming election.

The tariffs, which included a 25 per cent tax on steel and a 10 per cent tax on aluminium imports, stirred controversy and triggered trade disputes worldwide. Initially, Mexico, a major trading company in the US, secured an exemption from these tariffs. Read more...

Innovations that pave the way for a better future are crucial for advancing technology, improving quality of life, and addressing global challenges. An engineering research team at the University of Alberta (U of A) has discovered a new coating material comprising metals like aluminium and nickel that shows great potential for high-temperature applications, such as hydrogen combustion engines.

Dubbed - AlCrTiVNi5, the newly developed alloy material is ideal for coating surfaces that endure high temperatures, such as those found in gas turbines, power stations, and vehicle and aeroplane engines. It also boasts superior thermomechanical properties, including high stability, low thermal expansion, fracture tolerance, and an exceptional combination of strength and ductility. These attributes enable it to perform well in high-heat and high-pressure environments. According to project supervisor Jing Liu, an assistant professor in the Department of Chemical and Materials Engineering, this new coating material outperforms existing commercially available alloys used in high-temperature applications. It holds significant promise for use in hydrogen engines. Read more...

Turkey has reportedly signed an electric vehicle manufacturing contract with Chinese electric car maker BYD. According to Turkish officials, the $1 billion plant will be located in the west of the country. The new plant coming up in Turkey will give the Chinese car manufacturer easier access to the European Union, as a small part of Turkey called East Thrace is in Southeast Europe. With the new plant, BYD will serve the Turkish domestic market with EVs, which accounted for 7.5 per cent of car sales last year in Turkey.

On July 5, Turkey said that this deal resulted from a month-old decision to withdraw the plan to impose an additional 40 per cent tariff on electric vehicle imports originating from China. The decision was consciously made to improve investments in the country. BYD, which has become China’s best-selling car brand after facing losses over many years, is now eyeing the European market. The Shenzhen-based car brand aims to bring its lower-priced EVs to Europe in the coming years, including the Seagull hatchback that executives expect to sell for less than €20,000 ($21,700). Read more...

Recorp Aluminium, New Zealand's most progressive can-manufacturing company founded and funded by the country's brightest beverage container specialists, is on the brink of launching its $100 million-plus facility into operation in South Auckland. The founder and chairman of the company, former Air New Zealand chief executive Rob Fyfe, expressed his positive views about the project, saying that it should break even in its second year of operation. The new can manufacturing plant, equipped with cutting-edge technology, is poised to revolutionise New Zealand's beverage packaging industry. It is scheduled to commence operations in early September 2024, albeit five months behind schedule due to a site change.

Recorp Aluminium was founded to revolutionise New Zealand's packaging industry for businesses and consumers alike. Leveraging state-of-the-art technology, Recorp has attained expertise in manufacturing flexible, responsive aluminium cans to complement a wider choice of consumers for beverage packaging. Read more

Speira, a leading rolling and recycling company, has announced a significant new investment in its Karmøy facility. With an allocation of NOK 6 million, Speira will install a state-of-the-art slag press. This cutting-edge technology enhances recycling by efficiently processing waste from aluminium production. The investment underscores Speira's commitment to sustainability and innovation in the aluminium industry. By enabling the recycling of production waste, the new slag press will contribute to reducing the environmental footprint of aluminium manufacturing and support the company's goal of promoting a circular economy.

Recycling and treating aluminium slag is a crucial aspect of Speira’s sustainability strategy. The installation of the slag press is expected to bolster Speira's recycling capabilities, ensuring that more aluminium waste is recovered and reused. This move aligns with global trends toward increased recycling and sustainability in industrial processes. Speira's initiative in Karmøy is poised to set a benchmark in the industry, showcasing how technological advancements can drive environmental and economic benefits in metal production. Read more...

The Ministry of Ecology and Environment (MEE) of China has unveiled draft regulations to facilitate the importation of recycled aluminium and copper, aiming to enhance supply and bolster industry competitiveness. China, the leading global producer and consumer of metals, is intensifying its efforts to use more recycled materials. This initiative is part of a broader strategy to reduce carbon emissions from its energy-intensive industries while preventing the nation from becoming a repository for international waste.

According to a notice issued by the MEE, raw materials for recycled copper, copper alloy, aluminium, and aluminium alloy will no longer be classified as solid waste. This reclassification means these materials can be imported without restrictions, marking a significant shift in China’s import policies. The ministry is currently seeking market feedback on the proposed changes. Read more