LME Roundup – Continued Overcapacity from China

July 1 – Results of Warehouse Discussion Paper and Next steps for consultation on warehouse operation, London Metal Exchange

July 1 –Glut of Chinese Goods Pinches Global Economy,” The Wall Street Journal

July 7 Aluminum Bear Market Piles Pressure on World’s Biggest Smelters,” Bloomberg Business

China, which accounts for half of the world’s aluminum output, is on pace to export record amounts of metal products this year, helping to deepen a worldwide glut. Producers outside China, including Alcoa Inc. and United Co. Rusal, had already cut back capacity through last year. Still, 1 million metric tons more, enough to supply Japan for six months, will probably be curtailed within a year, according to Macquarie Group Ltd.

July 8 –Aluminium Being Squeezed On Spurt In Output,” India Info Line

July 9 –Warehouse Crackdown Cuts Aluminum Costs: Delivery fees drop as rules kick in aimed at loosening Wall Street’s grip on stockpiles,” The Wall Street Journal

Manufacturers of goods from cars to soda cans are benefiting from declining aluminum costs, a sign that new warehouse rules aimed at loosening the grip of Wall Street banks are having the desired effect.

July 10 –Industry demands import duty hike on aluminium metal, scrap,” Times of India

July 16 –Aluminum Output Jumps to Record in China Swelling World Glut,” Bloomberg Business

New supply from China is forcing smelters elsewhere to cut output as exports surge and prices slump. Shipments from the country rose to the highest this year in June, boosting a global surplus of the raw material used in everything from cans and cars to aircraft and sending rates to the lowest since 2009.

July 17 –Warehouse reforms not key driver of premiums,” American Metal Market

London Metal Exchange warehousing reforms have had a limited effect on the Midwest aluminum premium, while import and demand levels have been far more influential, according to North American aluminum market participants and analysts.

July 20 –China, the aluminum giant that’s still growing: Andy Home,” Reuters

Global output grew by 10.3 percent in the first half of this year, the fastest rate of growth since 2010, when many smelters were reactivating capacity idled during the depths of the global financial crisis.

July 21 –Aluminum Declines to Two-Week Low as China Supply Adds to Glut,” Bloomberg Business

July 22 –Norsk Hydro CEO Says Low Aluminum Prices May Trigger Production Cuts,” The Wall Street Journal

Norwegian aluminum producer Norsk Hydro may trim production even further to cope with low aluminum prices, the firm’s president and chief executive Svein Richard Brandtzaeg in a telephone interview [with WSJ].  Norsk Hydro, one of the largest aluminum producers in the world, has already reduced capacity by 26%, but continues to feel the effects of the price plunge. Aluminum prices have fallen more than 10% since the beginning of the year and are trading at six-year lows.

July 30 –London Metal Exchange to Accept Chinese RMB as Cash Collateral,” Metal Miner


Common Goals, Shared Action – EAA Launches Sustainability Roadmap through 2025

Aluminum is a solution to many of the societal and economic challenges that Europe faces as it seeks to build a competitive and sustainable industrial sector. Hence, aluminum is a key enabler of Europe’s transition to a low carbon and resource efficient economy. On this basis, the European Aluminum Association (EAA) along with the European aluminum industry has developed a roadmap of how this ambition can become reality.

The fruit of long reflection by the aluminum industry — and the  subject of consultation with stakeholders around Europe — the  European Aluminium Industry’s Sustainability Roadmap combines  concrete commitments with a voluntary approach.

Encompassing alumina and primary production through to semi-fabrication, end-use products, and recycling, the scope of the roadmap is broad. It targets everything from raw materials sourcing to product design to employee welfare and community engagement, setting out an ambitious journey to sustainability commitments that covers all aspects of the aluminum value chain. The Sustainability Roadmap is a significant milestone for EAA member companies, and a tool to proactively engage with political, NGO, and community stakeholders. Getting the most from aluminum requires a collective effort. An inclusive approach is the best way to harness all the societal benefits that our material can deliver, in other words The Aluminium Effect.

Sapa’s Rockledge extrusion plant featured on Manufacturing Marvels

Manufacturing Marvels®, the award winning series that spotlights American manufacturers, featured Sapa‘s aluminum tubing plant in Rockledge, Florida on the Fox Business Network on June 25, 2015. The plant delivers aluminum solutions used in heat transfer applications for customers in the automotive and HVAC&R industries.

Learn about Sapa’s North American R&D activities in the April 2015 issue of Light Metal Age.

Extrusions Strengthen the Future – 2015 AEC Management Conference


The Aluminum Extruders Council (AEC) released details about its 2015 Management Conference in Chicago, Illinois, scheduled for September 22-24, 2015 at the Hilton O’Hare Airport Hotel. The event will offer comprehensive education and networking opportunities for aluminum extrusion industry professionals. Rich in sessions focused on how the extrusion industry is “Strengthening the Future,” the conference will feature business and industry speakers who will share their insights and knowledge on important issues that affect aluminum extrusion operations. The program is comprised of General Sessions, Focus Sessions, and networking events, including a reception that features tabletop exhibits from AEC Supplier Members.

Topic Highlights include:

  • Technical Topics covering extrusion press issues, die preparation and protection, and the pretreatment process related to corrosion prevention.
  • Industry Promotion, highlighted by sessions on promoting extrusions to potential customers, including advances in joining technology, PR and marketing for manufacturers, and a session that outlines the new AEC Environmental Product Declaration (EPD) program getting under way.
  • Management Issues covering key topics such as safety management systems and credit risk management.
  • Statistical Review: How to Use AEC Data takes a look at “Super Extruders” and how they reach levels of high productivity by using all the AEC member benefits available to them, including participating in AEC education, meetings and volunteer opportunities, as well as completing various surveys and studies offered only to AEC members.

Notable speakers include:

  • Thomas Landstreet, an economist and writer who boasts a successful career on Wall Street, will share his wit and wisdom on politics, investments and economic policy.
  • Justin Craig, Associate Professor of Entrepreneurship at Northwestern University, will present a timely look at “Attracting and Motivating Young, Talented Employees.”
  • Michael Walsh, Director ADCVD Policy & Programs, U.S. Customs, will explain how the Federal Government handles reports of deliberate tariff circumvention, the role his team plays in investigations and the remedies available to industry.
  • Timothy Hayes, Principal, Lawrence Capital Management, will provide an Industry Outlook for U.S. downstream aluminum markets with an emphasis on the domestic extrusion industry, as well as demand projections through 2019 for major extrusion markets.

The Management Conference begins with a welcome reception Tuesday evening, September 22, and concludes at noon on Thursday, September 24. As a convenience to volunteers, most AEC committees and teams will meet just prior to the Conference. Members of the AEC are eligible to register for the conference. For complete details on the program, visit www.AECmeets.org and follow the link to the AEC Management Conference registration website.

VIDEO: Can you Automate Aluminum TIG Welding?

Weld.com answers a Forum question, in which they were asked for any recommendations for automating aluminum TIG welding. The answer: while, it is much more difficult to automate aluminum welding than it is other metals, it can be done.

Kaiser Aluminum – Aluminum Extrusions Consumption Continues to Rise

In this video, Kaiser Aluminum reports that recent aluminum industry reports indicate a continued rise in aluminum extrusion demand, expanded use of aluminum in mainstream SUV applications, aluminum’s contribution to better vehicle safety ratings, and the need for more automotive aluminum content to assist vehicles in meeting stricter CAFE and emissions regulations.


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