Primary weekly recap: Century Aluminum gets $500 million approval from the U.S. Department of Energy for a green smelting project while EGA upgrades its operations with SAP's S/4HANA software
In the ever-evolving landscape of the aluminium industry, this weekend has been marked by a flurry of developments, ranging from life-altering innovations to sobering tragedies. National Aluminium Company (NALCO) has unveiled AL-59, a cutting-edge aluminium alloy ingot poised to redefine the conductor industry with its exceptional corrosion resistance. Meanwhile, Century Aluminum secures a monumental $500 million funding from the United States Department of Energy, propelling forward its ambitious Green Aluminum Smelter Project aimed at revitalising the nation's primary aluminium sector. However, amidst these strides towards progress, tragedy strikes at Juei Feng Aluminium Co., Ltd., as a devastating explosion claimed the lives of two Thai workers, underscoring the need for stringent safety measures in industrial settings. Moreover, the European aluminium supply chain faces uncertainty amidst sluggish demand and looming threats of sanctions, while Emirates Global Aluminium (EGA) charts a course towards the future with its adoption of SAP's S/4HANA software, poised to revolutionise aluminium production.
Amidst these highs and lows, the industry braces itself for the various obstructions and opportunities that float ahead. The LME aluminium price has grown by US$23.50 per tonne or 1.05 per cent over the week from US$2,246.50 per tonne on Friday, March 22, to US$2,270 per tonne on Thursday, March 28. Similarly, the SHFE aluminium price has gained US$8 per tonne or 0.3 per cent from US$2,699 per tonne recorded at the beginning of the week to US$2,707 per tonne at the end.
National Aluminium Company (NALCO) has released AL-59, an innovative aluminium alloy ingot that promises to revolutionise the conductor industry. The product launch coincides with the rollout of the Government of India's Revamped Distribution Sector Scheme (RDSS). AL-59 boasts exceptional corrosion resistance, making it well-suited for use in transmission and distribution networks along coastal regions. The alloy has a broad range of applications, from low to ultra-high voltage transmission lines. This new product is expected to shape the future of the industry.
The U.S. Department of Energy's Office of Clean Energy Demonstrations is providing Century Aluminum with up to $500 million as part of the Industrial Demonstrations Program. Century Aluminum's Green Aluminum Smelter Project will use the funding to build the first new U.S. primary aluminium smelter in 45 years, which will multiply the size of the current U.S. primary aluminium industry by two. The smelter will also support domestic supply chains of critical materials like aluminium that are necessary for the green energy transition. Century Aluminum aims to create over 1,000 full-time direct jobs and over 5,500 contractual jobs by building the new smelter.
An explosion at Juei Feng Aluminium Co., Ltd.'s plant in Kaohsiung resulted in the loss of two Thai workers' lives, with six others sustaining injuries. The cause of the explosion is suspected to be a control system error. The Kaohsiung City Labour Bureau suspended operations at the plant and imposed a fine on the owner. The Thai Labour Office in Kaohsiung City will oversee the compensation and benefits process for the affected Thai workers, and the provincial public health offices will provide support to the victims' families and relatives.
The European aluminium sector is facing hurdles to market growth due to passive demand and understated buying and selling sentiments. Aluminium producers are hesitant to resume their curtailed capacity, which is evident from the lacklustre growth of primary aluminium production. The LME aluminium prices have been exhibiting a downtrend due to lacklustre demand for aluminium. The impact of the slow resumption rate of aluminium capacities in Europe may also affect the supply chain. Furthermore, the sanctions on Russian metal may possibly fuel the supply chain crisis. The European Union is contemplating imposing anti-dumping duties on Chinese aluminium extrusions.
Emirates Global Aluminium (EGA) has partnered with SAP to modernise its enterprise resource planning (ERP) system by transitioning to SAP's S/4HANA software. The move is part of EGA's digital transformation to lead the aluminium production industry in the application of Industry 4.0. EGA relies on SAP software solutions to oversee crucial functions across its global operations. By adopting SAP's S/4HANA, EGA anticipates a 30-fold increase in processing speeds, which will fortify its current computing infrastructure and lay the foundation for future digital advancements.
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