Key highlights from the global aluminium industry, December 2023
As we approach the final hours of the year 2023, let us reflect on the key highlights from the aluminium industry this December. At the start of the year, aluminium prices were positioned towards the higher end, but as foreseen in the preceding year, a continual decline ensued. Despite earlier predictions suggesting an improvement in demand and pricing during the second half of 2023, such expectations did not materialise. However, in the closing days of 2023, there has been a noticeable uptick in prices, signalling a positive trend in the industry. Despite facing challenges throughout the year, the aluminium industry experienced significant events, and December 2023 was also quite an eventful month. In brief, here are the highlights:
Aluminium Stewardship Initiative (ASI) announced that Otto Fuchs KG has been accredited against the ASI Performance Standard V3 (2022) with an emphasis on Material Stewardship and the ASI Chain of Custody Standard V1 (2017), according to the Aluminium Stewardship Initiative (ASI). Entities are now evaluated to Principles 1-4 of the Performance Standard V3 due to the transitional period of Performance Standard Material Stewardship certificates from V2 (2017) to V3 (2022).
Leading the automobile industry towards sustainability and net-zero carbon emission, Volvo Cars announced on November 30 its plan to cut per-car emissions by 75 per cent by 2030. Volvo will be merging the applications of near-zero emissions aluminium tech and near-zero emission primary and recycled steel in its vehicles to set an exemplary benchmark in the industry and reduce the maximum carbon footprint as per the target by 2030.
As part of the long-term global decarbonisation strategy, Rio Tinto has approved the construction of a new 12.4 MW solar farm and 8.8MVa/2.1MWh of battery storage for renewable energy supply to Amrun bauxite mine near Weipa in Queensland. This initiative also represents Rio Tinto's ongoing efforts to reduce emissions at its Pacific bauxite, alumina, and aluminium operations. The solar farm and battery storage are jointly expected to substitute about 37 per cent of Amrun's diesel electricity consumption and cut annual CO2-equivalent emissions by 14,000 tonnes while adding to the existing 5.6MW of solar and 4MWh of battery power built for Rio Tinto's Weipa operations.
According to the latest update, Norsk Hydro has completed the transaction of US$1.11 billion with Glencore for the sale of 30 per cent interest in Alunorte alumina refinery and 5 per cent interest in Brazilian bauxite producer and exporter Mineracão Rio do Norte (MRN). The transaction also includes the sale of an additional 40 per cent stake in MRN, which Hydro had to purchase first and then sell to Glencore on the condition that it would no longer have an ownership position in MRN.
According to a recent report, a global aluminium producer has offered Japanese buyers a shipment premium of $95 per tonne over the global benchmark price for the first quarter of 2024 (January 1-March 31). The news came on December 1 after three sources directly involved in quarterly pricing talks reported. Compared with the ongoing quarter, the premium proposed for Q1 2024 is $2 per tonne or 2.06 per cent lower. Currently, Japanese buyers are paying a premium of $97 per tonne for Q4 2023.
To know more: https://www.alcircle.com/news/aluminium-shipment-premium-for-q1-2024-is-offered-at-95-t-to-japanese-buyers-103137
According to the International Aluminium Institute survey, primary aluminium production in the Gulf Cooperation Council during October 2023 stood at 518,000 tonnes, reflecting a hike of 18,000 tonnes or 3.6 per cent month-on-month. The output in October recorded a recovery from a month-on-month decline in September from 517,000 tonnes to 500,000 tonnes. That indicated a 3.3 per cent M-o-M fall to the second least output this year after 474,000 tonnes in February.
To know more: https://www.alcircle.com/news/gulf-cooperation-councils-primary-aluminium-production-recovers-by-3-6-m-o-m-in-oct23-103164
The China International Supply Chain Expo (CISCE) opened in Beijing from November 28 to December 2 with great anticipation. It showcased various aluminium alloy materials that are suitable for automotive use and materials for power battery packs. Of particular interest was the exhibit by Chinalco Advanced Manufacturing Co., Ltd., which featured a range of aluminium materials for use in vehicles. Chinalco Advanced Manufacturing Co., Ltd., being one of the earliest domestic enterprises to conduct research and production of aluminium for automotive use, has played a pioneering role in exploring the basic theory, industrial technology, and key equipment technology of automotive aluminium.
To know more: https://www.alcircle.com/news/cisce-2023-made-in-chongqing-aluminium-products-are-hailed-by-international-oems-103167
The United States aluminium plates, sheets and bars exports to Canada improved by 9.22 per cent month-on-month to 30,800 tonnes in August 2023 but could not touch the output volume in June. In June 2023, the US aluminium plates, sheets and bars exports to Canada stood at 33,600 tonnes, which, in the subsequent month, fell by 16.07 per cent to 28,200 tonnes. According to the US Geological Survey, the United States aluminium rolled products exports to Canada in June 2023 saw a rise of 8.74 per cent from 30,900 tonnes in May, which, compared to April, stood at 4.33 per cent lower than 32,300 tonnes.
South African billionaire family, also known as the Oppenheimer family has bought a majority position in GZ Industries, one of Nigeria's leading aluminium can manufacturers. Jonathan Oppenheimer, the son of Africa's second wealthiest individual, Nicky Oppenheimer, successfully acquired complete control of GZ Industries Ltd., a prominent beverage can manufacturer in Nigeria. This acquisition signifies a strategic investment in potentially revitalising Africa's largest economy.
To know more: https://www.alcircle.com/news/oppenheimer-family-buys-nigerias-leading-aluminium-can-maker-gz-industries-103147
Industry leaders at COP 28 have established a recycling goal of almost 100 per cent for the world's aluminium beverage cans by 2050. UN Climate Change Conference (COP 28), a seminar held every year in Dubai, United Arab Emirates, is the world's sole multilateral decision-making platform on climate change, with almost every nation in the world represented. Aluminium manufacturers, recyclers, rolling mills, can makers, and industry groups have established a goal to support the IEA's Net Zero 2050 objective by emphasising the need for improved recycling. Even if over 70 per cent of aluminium beverage cans are recycled into new goods, more is needed to reach the 1.5-degree objective.
To know more: https://www.alcircle.com/news/industry-leaders-at-cop-28-aim-to-achieve-a-100-aluminium-cans-recycling-rate-by-2050-103192
Conclusion
Aluminium industry experts and analysts forecast that the first half of 2024 will closely resemble the trends observed in 2023. However, there is optimism for a more favourable outlook in the second half of 2024, contingent on the anticipated recovery of the Chinese real estate sector. Despite various predictions and market conditions, there is a growing consensus that aluminium is emerging as the metal of the future.
Cheers to a splendid New Year 2024, where every page of your journey is filled with the brilliance of aluminium! Here's to a year of innovation, growth, and endless possibilities for our cherished readers, esteemed associates in the aluminium industry, and every soul around the globe. Let the pages of www.alcircle.com be your guide to a year brimming with excitement, discovery, and the lustrous shine of success. Happy New Year 2024! 🌟🎉
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