CRU aluminum news roundup

Later on May 31, the core Personal Consumption Expenditures (PCE) Price Index – the US Federal Reserve’s preferred inflation measure – was set to be released by the US Bureau of Economic Analysis (BEA). While a soft PCE reading could weigh on the US Dollar and lift the aluminum price as the most immediate reaction, a stronger reading could add to recent concerns that interest rates may remain high for longer.

SHFE cash came under some light selling pressure on Friday. The cash contract settled at RMB21,370 per mt and was trading Friday at RMB21,465/mt.

Hydro to install new line at US plant

Hydro will add a 28,000-mt-per-year casting line largely fed by recycled aluminum at its Henderson mill in Kentucky to serve the automotive industry. The new unit, costing $85 million to install, will be based on the company’s HyForge technology, already in use at the Husnes primary plant in Norway and Rackwitz recycling plant in Germany. Due to become operational in 2026, the casthouse will produce smaller-diameter billets that can be forged directly into automotive components, thereby reducing the number of steps in traditional processing. This will lead to cost efficiency and higher product quality, according to Hydro. As HyForge uses a high portion of aluminum scrap, its output has a low carbon footprint in line with the US automotive industry’s desire to further decarbonize, said Hydro’s president and CEO Eivind Kallevik.

Meanwhile, installation of a new baghouse and homogenization equipment at the Henderson recycling plant is nearing completion and will enable the mill to produce larger volumes of advanced alloys with a lower-carbon footprint.

Hydro starts onsite renewable energy production with battery storage systems

In Sweden, Hydro Extrusion announced it has started onsite production of renewable energy. The end goal is a switch to 100% locally produced energy from renewable sources for Hydro’s extrusion plants in Vetlanda and Finspång. With the recent completion of phase one (executed by Hydro’s renewable energy company, Hydro Rein) rooftop and ground mounted solar panels, coupled with battery storage systems, have started delivering an important contribution, supplementing an already existing local hydropower plant, Hydro said.

The technical solution involves seven rooftop installations, with a total capacity of 2.1 Megawatt peak (MWp), a 2 MWp ground-mounted solar PV system and three battery storage solutions with a total capacity of 4.5 MW. The energy project was initiated in 2022. The end goal is to reduce CO2 emissions from the extrusion plants in Vetlanda and Finspång to zero. Attention is now directed to further improve activities including an array of energy efficiency and transition measures to reduce climate and environmental impacts.

Novelis announces launch of IPO roadshow

Novelis announced it has launched a roadshow for the initial public offering (IPO) of 45,000,000 of its common shares held by Hindalco Industries. The IPO’s price per common share is currently estimated to be between $18.00 and $21.00 per share. Novelis has applied to list its common shares on the New York Stock Exchange under the symbol “NVL.” After the completion of the IPO, a subsidiary of Hindalco will own 555,000,000 shares of Novelis’ common shares, representing 92.5% of Novelis’ total outstanding common shares.

By considering the mid-point of the range of $18–21 per share, Novelis could raise about $877.5 million in the IPO. Morgan Stanley, BofA Securities and Citigroup are acting as lead book-running managers for the proposed offering.

US ITC initiates Section 337 investigation on some aluminum products

The US International Trade Commission (ITC) has recently voted to institute an investigation of certain high-strength aluminum and aluminum alloy-coated steel. The investigation also covers automotive products containing same. The investigation is based on a complaint filed by ArcelorMittal of Luxembourg on April 17, 2024. The complaint alleges violations of section 337 of the Tariff Act of 1930, regarding imports of those products into the US. The complainant requests that the ITC issues a limited exclusion order and cease and desist orders.

The ITC’s Chief Administrative Law Judge will make an initial determination as to whether there is a violation of section 337. The ITC will then make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the ITC will set a target date for completing the investigation.

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