In May 2024, the global aluminium industry experienced notable price gains, driven by rising demand despite ongoing geopolitical tensions and economic deceleration expected in several key nations. This uptick marks a significant shift from earlier projections.
At the start of the year, AL Circle's "Global Aluminium Industry Outlook 2024" predicted a gradual increase in aluminium demand and prices, with more substantial gains anticipated towards the latter half of the year. However, the current gain suggests a faster-than-expected recovery, highlighting the sector's resilience amid challenging global conditions.
As the world is paving the road towards a sustainable future and the aluminium industry is also gearing up to shift towards a green future, the aluminium industry’s biggest challenge in the upstream segment is the bauxite residue, which we commonly say red mud. While a small fraction of the total red mud is being utilised in a few applications, a large portion finds its way to the tailing dams. Stakeholders in the industry are already working in unison with research organisations to find ways of valorising red mud. As a result, methods of further processing red mud to obtain minerals such as iron, titanium, scandium, etc., have been formulated. Red mud is also used in the production of cement and building materials such as bricks, tiles, and ceramics, as well as in road construction and various other applications. While some of these applications are in the pilot stage and some lack commercial viability, more and more research in finding value from red mud is expected to improve this situation. Along with this research, it is also important that governments and communities' perception of red mud must shift from viewing it as a hazardous waste to one that can be converted to useful products.
May 2024 was an eventful month, marked by several significant news stories. Here are the major highlights that stood out:
Aluminium Bahrain B.S.C. (Alba) has reportedly introduced a new low-carbon aluminium product line called EternAl with two variants: EternAl-30 and EternAl-15. They have 30 per cent and 15 per cent recycled content, respectively. Alba's EternAl product line reflects the company's novel stride towards creating a greener future through using secondary aluminium and advocating a circular economy. It also addresses the growing demand for low-carbon aluminium across the globe.
To know more: https://www.alcircle.com/news/alba-unveils-new-low-carbon-aluminium-product-line-eternal-110838
The London Metals Exchange (LME) initiated a consultation process mandating aluminium brand producers, eligible for delivery under its contracts, to furnish carbon emissions data by March 2025. The objective is to synchronise the aluminium market with the stipulations of Europe's Carbon Border Adjustment Mechanism (CBAM), which imposes carbon-related expenses on specific imported goods. LME-approved primary aluminium producers and aluminium alloy producers, as well as participants in the North American Special Aluminium Alloy Contract (NASAAC), will be required to furnish emissions data for both Scope 1 and Scope 2 to the trading and price-formation venue of choice for industrial metals globally (LME). This clear and straightforward requirement ensures their compliance with the industry's environmental standards.
To know more: https://www.alcircle.com/news/lme-calls-for-carbon-emissions-disclosure-from-aluminium-producers-by-2025-110726
According to China customs data, the country’s bauxite imports in April 2024 reached a record monthly high of 14.2376 million tonnes, up by 20.02 per cent M-o-M and 18.84 per cent Y-o-Y. In March 2024, China’s bauxite import volume amounted to 11.8628 million tonnes, reflecting an increase of 5.19 per cent M-o-M and a decline of 1.43 per cent Y-o-Y. In April 2024, China’s bauxite imports marked the second consecutive month of increase, following a drop in February to 11.2775 million tonnes from 13.2019 million tonnes in January. Thus, China’s bauxite imports totalled 50.5798 million tonnes in the past four months, according to China customs data.
In a strategic manoeuvre to secure Alumina Ltd.'s $4 billion buyout, American aluminium giant Alcoa has tailored a unique arrangement for the company's second-largest shareholder, China's CITIC Group. As reported by the Australian business-focused, compact daily newspaper Australian Financial Review, this move aims to garner CITIC's backing while adhering to US banking regulations. Sources indicate that the modifications were crafted in collaboration with CITIC to safeguard the group's position if the shareholder vote favours the takeover. As of now, CITIC has yet to officially decide whether it will retain its stake in Alumina Ltd. or sell its shares in exchange for Alcoa stock.
To know more: https://www.alcircle.com/news/alcoa-proposes-special-terms-to-citic-group-to-smooth-the-4-billion-alumina-ltd-deal-110946
Trimet Aluminium SE is set to boost production at its smelters in France and Germany to full capacity over the next year, signalling a recovery for the European aluminium industry amid declining energy costs. During the energy crisis, the continent's aluminium sector faced severe challenges, with over half its capacity shuttered due to soaring power prices. As one of the most energy-intensive metals to produce, the electricity cost during the crisis's peak in countries like France was more than five times higher than what smelters could earn from selling aluminium.
To know more: https://www.alcircle.com/news/falling-energy-costs-propel-trimet-aluminium-se-to-ramp-up-its-output-110902
Commodity trader Trafigura delivered more than 400,000 tonnes of aluminium to the London Metal Exchange-approved warehouses last week for lucrative financial deals. This monumental delivery brought the LME inventories to more than a two-year high since January 2022. These stocks are subject to so-called rent share deals, which allow LME-approved warehouses to share fees with companies that deliver metal to them. Delivery companies do not retain ownership of the metal but get a portion of the rent from LME as long as the stocks remain in the warehouses.
To know more: https://www.alcircle.com/news/swiss-based-commodity-trader-trafigura-delivers-400-000-of-aluminium-to-lme-110858
Chinese scientists have pioneered a superlative aluminium alloy capable of withstanding extreme temperatures, heralding a new era in aerospace engineering. This remarkable achievement addresses a longstanding challenge, expanding the operational range of aluminium alloys to unprecedented heights. Traditionally prized for their lightweight properties, high strength, and corrosion resistance, aluminium alloys have long been the cornerstone of aerospace construction. However, their limited heat resistance, particularly within the critical temperature bracket of 350 to 500 degrees Celsius, has posed significant obstacles to further advancement.
Wisconsin Aluminum Foundry (WAF) has begun a new chapter of expansion with the acquisition of ATEK Metal Technologies, an esteemed Iowa-based aluminium castings manufacturer. This acquisition signifies growth and embodies a nostalgic return to roots, intertwining the legacies of both companies. As WAF embarks on its fourth acquisition in recent years, the company's trajectory is guided by a steadfast allegiance to its roots. While expanding beyond state borders, WAF remains anchored in its Manitowoc origins, preserving the essence of its heritage amidst dynamic growth.
To know more: https://www.alcircle.com/news/wisconsin-aluminum-enhances-aluminium-parts-production-through-atek-metal-acquisition-110813
Chinese can manufacturer Bosun New Material & Technology Co (BNM) has unveiled what they claim to be the first rectangular peel-off end of its size, along with a peel-off end featuring a built-in straw insertion capability. The F316 rectangular peel-off end has been designed with either a retortable aluminium foil or transparent membrane, catering to diverse packaging needs such as seafood, meat, or ready meals. The PO! Peel-off end features a straw insertion mechanism and is engineered for hassle-free usage. It is compatible with a range of materials, including steel and aluminium, and boasts high-temperature resistance.
In a recent development, Mercedes-Benz has entered into a memorandum of understanding (MoU) with TSR Recycling GmbH & Co. KG, signalling a significant stride towards bolstering its circularity strategy concerning end-of-life vehicles, as reported by GlobalData. This strategic partnership underscores Mercedes-Benz's commitment to sustainability and marks a pivotal step in its efforts to enhance recycling and reusability practices within the automotive industry. This MoU centres around the extraction of secondary materials via the concept of "urban mining."
Conclusion
As the world navigates these turbulent times, the aluminium industry's performance remains a critical barometer of broader economic health. Industry experts monitor these trends closely, anticipating how they might shape the market's trajectory in the coming months.
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