Downstream Weekly Recap: Aluminium scarce related to magnesium supply deficiency from China, says AMAG chief; India’s coal supply curb drags unrest in SMEs of aluminium supply chain
The global aluminium downstream segment has been in the spotlight this week due to a number of events. To begin with, the CEO of AMAG Austria Metall AG, Gerald Mayer cautioned by saying that the primary reason for the aluminium dearth is actually due to the shortage of magnesium supply that resulted from the suffocation of Chinese electricity production at fossil-fired power plants. Also in India, the coal crisis continues, as Indian Industrial Value Chain Council (IIVCC) carried out stating 5000 plus SMEs who are associated with the aluminium value chain have shown disquiet of suffering huge losses if the ongoing dry fuel supply distress experienced by the primary aluminium industry is not immediately resolved.
_0_0.png)
The Aluminium Stewardship Initiative has successfully certified Novelis’ rolling and recycling activities at the facility in Pindamonhangaba, Brazil, against the Performance Standard Certification. The facility has an annual capacity of 490 thousand tonnes for recycling and 680 thousand tonnes for aluminium sheets, primarily destined for beverage packaging and consumer and industrial packaging in the South American region.
The global auto industry has been alerted for the shortfall of components driven by the Chinese energy crisis. The power distress is restricting the nation towards production curb across a wide range of industries, but especially the impact is huge on aluminium alloys supply. The global auto industry has been alerted for the shortfall of components driven by the Chinese energy crisis. The power distress is restricting the nation towards production curb across a wide range of industries, but especially the impact is huge on aluminium alloys supply. The dearth of the metal could sceptically jolt the global automotive industry.
The Aluminium Stewardship Initiative (ASI) announced today that Kam Kiu Aluminium Products Group Limited's extrusion plant in Taishan City, China, has been successfully accredited against the ASI Performance Standard for responsible aluminium production, sourcing, and stewardship. Re-melting, casting, mould design and processing, extrusion, coating or anodizing surface treatment are among the facility's 31 extrusion manufacturing lines, which produce over 100,000 tonnes of extrusion profiles annually. The ASI Certification programme is the first complete voluntary sustainability standard project for the aluminium value chain, and it was established after considerable multi-stakeholder input.
To know more: https://www.alcircle.com/news/kam-kiu-aluminium-products-group-secures-asi-performance-standard-certification-71702
Swisstek Aluminium Limited, a Sri Lanka-based aluminium product manufacturer, is now part of the national sustainability drive through solar power generation facilities installation at its factory complex to shift to the usage of renewable energy. This initiative is expected to boost the company’s export share, considering the global aluminium consumers preference for materials from eco-friendly manufacturers. A rooftop solar panel array has been installed, given the factory’s large area and roof capacity. Thus, a total of 3,340 photovoltaic panels have been installed under the Ceylon Electricity Board’s net plus scheme, with a significant investment of over INR 156.5 million.
The raw material required for the production of metal aluminium is experiencing a dearth, while the price of the green metal has towered to sevenfold in a short span and the consumers will get the heat sooner or later, as stated by Adolf Kerbl, the Managing Director of the Foundry Industry Association. AMAG Austria is a supplier of primary aluminium and premium cast and rolled aluminium products. At the integrated facility in Ranshofen, Austria the company fully leverage its core competencies in recycling, casting, rolling, heat-treatment, and surface finishing. The Association of Mining, Steel and Non-Ferrous Metal Industry in the Austrian Chamber of Commerce are also alarmed about the crisis of magnesium, as it is used as an alloy metal. Magnesium is an irreplaceable component for aluminium and steel production and is of fundamental importance in the automotive industry, in packaging and for buildings.
To know more: https://www.alcircle.com/news/aluminium-scarce-related-to-magnesium-supply-deficiency-from-china-says-amag-chief-71713
On 28th October 2021, the Indian aluminium producers sent an emergency call to the Prime Minister’s Office (PMO) for resumption of coal supply with immediate effect, stating dearth has shoved the domestic aluminium industry to the verge that might negatively impact some 5,000 MSMEs in the downstream segment at a situation they are erupting of the pandemic spasm, now which can turn out to take away more than a million jobs. Following the Govt. of India’s decision in August 2021 to reduce coal supply by 50% from Coal India and further cut it to just 10% as rakes were rerouted to sustain inventories at power plants created drastic coal-stock circumstances at the aluminium facilities.
To know more: https://www.alcircle.com/news/india-aluminium-producers-send-mayday-to-prime-ministers-office-over-coal-stock-71734
In the first nine months of 2021, the AMAG group set new revenue and earnings records. The key reasons for this were consistent production results, increased export quantities, and competitive aluminium pricing. AMAG is a major Austrian premium provider of the high-quality aluminium cast and flat-rolled products for a wide range of sectors, including aerospace, automotive, sporting goods, lighting, mechanical engineering, construction, and packaging. The higher aluminium price and premium level, as well as the increased shipment volumes, have boosted revenue. In the first three quarters of 2021, the average three-month aluminium price was US$2,393 per tonne, up from US$1,663 per tonne the previous year.
To know more: https://www.alcircle.com/news/amag-announces-record-breaking-earnings-in-q3-2021-with-ebidta-of-53-million-71740
Novelis, the world's largest aluminium recycler, announced on Friday that it will spend $375 million in its Zhenjiang facility in China to enhance the recycling and manufacture of aluminium products used in the cars manufacturing sector. Metal recycling will be critical in the energy transition, which will entail a shift from internal combustion engines to electric vehicles. The expansion project is expected to be completed by the middle of 2024, according to Novelis, a subsidiary of India's Hindalco. Novelis, the world's leading producer of automotive sheets, processes almost two million tonnes of aluminium waste each year, resulting in products with a recycled content of 61% on average. Recycling aluminium saves 95% of the energy used to make new metal.
To know more: https://www.alcircle.com/news/novelis-to-expand-its-zhenjiang-aluminium-production-and-recycling-facility-by-mid-2024-71751
Hindalco Industries Limited has decreased its aluminium products and aluminium ingot prices with effect from Saturday, October 23, bringing its aluminium wire rod price to INR 267,100 per tonne. That was down by INR 5,250 per tonne or 1.93 per cent from INR 272,350 per tonne on October 22. Hindalco’s aluminium billets price also saw a cut of INR 5,250 per tonne on October 23 from INR 271,850 per tonne to INR 266,600 per tonne. The company’s aluminium ingot price also plunged by INR 5,250 per tonne to INR 256,000 per tonne, which on October 22 stood at INR 261,250 per tonne.
On Wednesday, October 27, Hindalco Industries Limited has slashed its aluminium products prices, in line with the sixth consecutive day of LME aluminium price fall. The company has reduced its aluminium billets price by INR 6,500 per tonne to INR 258,350 per tonne. On the previous day, the price was at INR 264,850 per tonne. Hindalco’s aluminium wire rod price has also witnessed a sharp cut of INR 6,500 per tonne from INR 265,350 per tonne on October 26 to INR 258,850 per tonne on October 27. The company’s aluminium ingot price has come in at INR 247,750 per tonne from INR 254,250 per tonne on the earlier day.
Aluminium with thickness from 0.008 inches to less than 0.25 inches thick is considered sheet, while thinner aluminium is foil and aluminium 0.250 inches and thicker is known as a plate. However, cold-rolled aluminium material less than 5.00 mm in thickness and under 600 mm in width is termed as strips. Aluminium plate is very much used for storage tanks in many industries in part because some aluminium alloys gain strength at extremely cold temperatures. Furthermore, aluminium sheet metal is a uniquely versatile metal sheet that has numerous applications in the modern world.
On 25th October 2021, the group representing Indian organizations involved in the industrial production and consumption supply chain activities across the country, the Indian Industrial Value Chain Council (IIVCC) labelled that 5000 plus SMEs who are associated with the aluminium value chain are in panic of suffering hefty losses if the ongoing coal supply distress challenging the primary aluminium industry is not immediately resolved. Out of 5000 MSMEs, around 1000 SMEs are associated with the supply chain and ancillaries of large aluminium producers and related input manufacturing industries, whereas, around 4000 SMEs are comprehended in the aluminium downstream manufacturing and distribution ventures.
To know more: https://www.alcircle.com/news/india-coal-supply-curb-drags-unrest-in-smes-of-aluminium-supply-chain-71707
The economy of Germany constitutes a mixed economic system that comprises a variety of private freedom, combined with centralized economic planning and government regulation. The economy of Germany stands strong, powerful and largest in Europe due to its exports of high-quality manufactured goods. The top economic power in Europe, Germany exported 610,434 tonnes of aluminium bar rods and profiles during 2019-20, which generated revenue earnings of $2.56 billion from the export. In 2019, Germany’s export of aluminium bar rods and profiles recorded at 303,994 tonnes and earnings counted to $1.31 billion, whereas, in 2020, the export manifested marginal growth by 0.80%, as the export volume rose to 306,440 tonnes, while earnings accounted dip to $1.25 billion.
According to the US Geological Survey (USGS), the United States imported 13,700 tonnes of crude metals and alloys from Argentina in July 2021, displaying a month-on-month ascend of 9,710 tonnes or by 243.35%. In June 2021, 3,990 tonnes of aluminium crude metals and alloys were imported from Argentina, a decrease of 78.07% from 18,200 tonnes in May 2021. On a year-on-year calculation, US aluminium crude metals and alloys imported from Argentina in July 2021, escalated by 2,300 tonnes or by 20.17% from 11,400 tonnes.
Hindalco Industries Limited again cut its aluminium products prices significantly, with effect from Thursday, October 28. Hindalco’s aluminium wire rod price came in at INR 247,850 per tonne after being plunged by INR 11,000 per tonne or 4.25 per cent from INR 258,850 per tonne in October 27. Hindalco’s aluminium billets price also saw a slash of INR 11,000 per tonne to INR 247,350 per tonne as of October 28. On the previous day, the price stood at INR 258,850 per tonne, seeing a plunge of INR 6,500 per tonne. Hindalco is currently selling its aluminium ingot at INR 236,750 per tonne as compared to INR 247,750 per tonne on October 27.
According to the Shanghai Metals Market (SMM), aluminium billet inventories in China dropped by 18,100 tonnes week-on-week across five major consumption areas. As a result, the inventories totalled 163,100 tonnes on Thursday, October 28. The major reason behind the decrease in aluminium billet inventories this week was primarily due to stock decline in Foshan and Nanchang. According to SMM, the inventory of aluminium billet descended because this week, there were fewer arrivals of aluminium billet in Foshan, but exports increased as downstream demand increased due to falling aluminium prices and increased demand from conversion plants after Guangdong's power limitation was lifted.
According to a recent report, Hydro is opening a new automotive extrusion press at its aluminium manufacturing plant in Suzhou, China, by investing NOK 390 million. The new P60 12-inch press will expand the extrusion capacity at Suzhou, along with the expansion of the plant. The extrusion press will manufacture automotive components, including crash management systems, such as bumper beams and crash boxes, as well as side sill inserts, side beams, and longitudinal beams. Besides, the new press will support other customer needs ranging from mill-finished extrusions to fabricated assemblies.
Researchers at Fraunhofer Institute for Solar Energy Systems ISE have evolved an innovative interconnection technology for shingled PV modules. The developed model removes the need for screen-printed busbars and also electrically conductive adhesives. Furthermore, it also enables solder-free aluminium interconnection which is highly cost-effective and an easy solution for the interconnection of separated cells in single solar modules. Under the conventional process, electrically conductive adhesives (ECAs) are used for connecting the shingled solar cells. These ECAs are used for joining the real side busbar of one cell with the front side busbar of an adjacent cell. However, Jan Nekarda is still unclear how much cost-effective the proposed interconnection technology will be compared to the conventional ECA technology.
source https://www.alcircle.com/news/downstream-weekly-recap-aluminium-scarce-related-to-magnesium-supply-deficiency-from-china-says-amag-chief-indias-coal-supply-curb-drags-unrest-in-sme-71759
Comments
Post a Comment