Key highlights from the global aluminium value chain, February 2023
The global aluminium industry in February 2023 witnessed some important announcements. The Russia-Ukraine geopolitical crisis marked one year in February 2023, which resulted in the White House pushing the Russian economy with new sanctions. The United States imposed a 200 per cent tariff on importing Russian aluminium into the country, including extrusion products. The other important announcement was the production resumption of the San Ciprián aluminium smelter by 2024. In 2022, the European primary aluminium sector was already forced to cut production due to the high energy prices. Activating this smelter will help the industry add some numbers to its output. In comparison, the Yunnan province of China declared the regional aluminium smelters to cut production due to the hydropower supply shortage. This might impact around 740,000 tonnes of primary aluminium production from the region.
The Chinese aluminium producer Tianshan Aluminium Group, located in Shihezi, a sub-prefecture-level city in Northern Xinjiang, announced its plan to procure three bauxite mines in Indonesia for USD$30.3 million.
On February 16, 2023, the Prime Minister of Guinea, Dr Bernard Goumou, was precisely in Koumbia to launch a significant bauxite project. On this other trip to the Boké region, Dr Bernard Goumou was accompanied by Moussa Magassouba, the Minister of Mines and Geology.
To know more: https://www.alcircle.com/news/guinea-s-prime-minister-launches-the-billion-dollar-koumbia-bauxite-project-91007
After a feasibility study approved its potential outcomes, USA-based aluminium giant Alcoa is about to set up a steam recycling technology or MVR module focused on reducing emissions. As the study has yielded positive results, Alcoa is on its way to purifying the next stage of its refinery for the future project by mounting a 4 MW MVR module at the Wagerup alumina refinery located in Western Australia.
On February 24, 2023, the United States administration declared the imposition of a 200 per cent import tariff on aluminium and derivatives produced in Russia from March 10, 2023, in response to the ongoing Ukraine-Russia geopolitical, the world's largest economy retains towards compression of Russia's revenue.
To know more: https://www.alcircle.com/news/us-declares-a-200-tariff-on-russian-aluminium-effective-march-10-91095
On February 16, China’s aluminium billet inventory slumped by 12,100 tonnes from 214,400 tonnes recorded the previous week. The inventory as of today settled at 202,300 tonnes. After earlier halting the increasing trend, there were two weeks of fall. Each of the five major markets saw a decline in inventory due to a significant outflow of goods from warehouses. Production of aluminium billets has essentially been restored to normal levels, and vast quantities of billets have flooded the market in east China, causing havoc with prices.
To know more: https://www.alcircle.com/news/aluminium-billet-inventories-in-china-drop-by-12-100-tonnes-to-202-300-tonnes-91001
The global industry leader in aluminium, alumina and bauxite, Alcoa Corporation, announced that most of the employers at its San Ciprián complex in Spain had approved an upgraded plan to reactivate the aluminium smelter in 2024. Alcoa announced a two-year hiatus in December 2021 to focus on developing ideas for a more robust smelting operation, which sky-high energy costs had challenged.
To know more: https://www.alcircle.com/news/alcoa-to-resume-operations-at-its-san-ciprian-aluminium-smelter-by-2024-89896
The use of giant aluminium die-casting machines, such as those made by Tesla supplier IDRA Group, can reduce manufacturing costs by up to 40 per cent by replacing around 60 welded components. Massive casting equipment, commonly called Gigapresses, was invented by Tesla to produce single, enormous pieces of vehicle underbodies, expedite production, and lighten the workload of even robots. As a result, it has become the most profitable manufacturer of battery electric vehicles (BEVs).
To know more: https://www.alcircle.com/news/gigantic-aluminium-die-casting-machines-help-carmakers-save-costs-up-to-40-89964
Two leading mobility solution providers and rolling stock giants from two different parts of the world, Alstom and Medha Servo Drives, have reportedly participated in bidding to manufacture 100 lightweight Vande Bharat trainsets. While Alstom is the only bidder among the five contenders not partnered with anyone, Medha has teamed with a Swiss company Stadler Rail.
According to a recent report, Hydro has planned to initiate the production of remelt aluminium scrap ingot at the Wrexham plant, UK, to increase the recycling of post-consumer scrap. This project will take the company closer to its sustainability drive by enabling it to offer more low-carbon aluminium to its European customers.
Kuusakoski Group Oy, a recycling pioneer and the only recycled aluminium producer in Finland, has reportedly invested 25 M€ in a new production line at the recycling plant in Heinola. This project will ramp up the company’s recycling capacity for non-ferrous metals, including aluminium.
The year 2023 looks positive in terms of worldwide aluminium demand. Still, high inflation, a continuous threat of recession and the strengthening of the US dollar are expected to act as a grinch, at least during H1, 2023.
AlCircle's recently released industry-focused report "Global Aluminium Industry Outlook 2023" predicts that aluminium consumption will rise by 1.7% to 96.9 million tonnes worldwide in 2023, primarily due to China's contribution.
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