CRU aluminum news roundup

Regarding recycled aluminum, Rio Tinto’s share of production from Matalco was 70,000 mt, down 6% quarter over quarter, as production was impacted by weak market conditions in North America. In December last year, Rio Tinto acquired a 50% equity stake in the Matalco business from Giampaolo. Finally, alumina production totaled 1.7 million mt, down 10% y/y, due to the continuing impacts to its Gladstone operations in Australia from the breakage of the third-party operated Queensland Gas Pipeline in March. Gas supplies are currently meeting around 90% of its requirements, Rio Tinto said, and are expected to return to normal levels by the end of 2024.

Alcoa announces stockholder approval related to buy of Alumina Limited

Alcoa announced the preliminary voting results of its Special Meeting of Stockholders on July 16. The stockholders approved the company’s issuance of shares in connection with the proposed acquisition of Alumina Limited. Approximately 99% of Alcoa shares present at the Special Meeting of Stockholders voted in favor of the issuance of the shares, Alcoa said. Final voting results will be reported on a Form 8-K that Alcoa will file with the US Securities and Exchange Commission within four business days.

“The strong support from our stockholders reflects their recognition of this strategic step to enhance Alcoa’s global position as a leading pure-play, upstream aluminum company,” said William F. Oplinger, president and CEO of Alcoa. “We are pleased to have reached this important milestone in the transaction.”

Alumina shareholders will consider and vote on the scheme on July 18. The scheme is then subject to approval by the Federal Court of Australia, at a hearing scheduled for July 22. The transaction is expected to close on or about Aug. 1.

Novelis invests in doubling its UK recycling capacity for UBCs

Novelis is investing approximately $90 million to double the recycling capacity for used beverage cans (UBCs) at its Latchford plant in the UK. This expansion will increase the facility’s recycling capacity for UBC by 85,000 mt/y, a growth of over 100%. The expansion involves constructing a new dross house, three new bag houses, and installing advanced shredding, sorting, de-coating, and melting technologies. These upgrades will boost the plant’s recycling volume and efficiency, resulting in an annual CO2e reduction of more than 350,000 mt for Novelis Europe.

The project is expected to begin commissioning in December 2026. Once operational, the facility will be able to recycle 100% of UBCs to be collected under the future UK deposit return scheme. This will create a local, fully circular system that will avoid the need to export scrap exports from the UK.

Alcoa posts profit despite an impairment

Aluminum producer Alcoa reported a net profit of $20 million in Q2, even after accounting for a $197-million charge on closure of the Kwinana alumina refinery at Perth, Western Australia. The earnings were within the $5-million to $25-million range the company had flagged a few days ago. Kwinana’s full curtailment was in response to running at a financial loss and 80% of its 2.2 million mt/y capacity due to a natural gas shortage and delay in mining approvals. The $20 million in net income is in contrast to Q1’s net loss of $252 million.

“Sequentially, the results reflect higher average realized third-party prices for alumina and aluminum and lower production and raw material costs, partially offset by higher energy costs and higher interest expense,” the Pittsburgh-headquartered company said. Adjusted Ebitda came in at $325 million, an increase both sequentially (+146%) and from last year (+137%). Alcoa’s average sales price for alumina was $399/mt vs. $372/mt and for aluminum $2,858/mt vs. $2,620/mt. Turnover went up 11.9% to $2.91 billion, with third-party alumina shipments 5.4% lower quarter on quarter at 2.27 million mt but aluminum’s up 6.8% to 677,000 mt.

Constellium claims hydrogen first

French aluminum products manufacturer Constellium has completed its first industrial-scale casting of a 12-mt slab fueled by hydrogen. “This achievement marks a pivotal step in Constellium’s journey towards decarbonizing our industrial activities,” said chief technical officer Ludovic Piquier. “Utilizing hydrogen as a substitute for natural gas not only demonstrates our commitment to sustainability but also paves the way for future innovations in green technologies.”

The company said it observed no quality impact on the metal from hydrogen combustion. The pioneering slab will be processed at Constellium’s Neuf-Brisach mill in France for use in electric vehicles (EVs). The company says it plans to use hydrogen provided it is green, more accessible, and cost-effective for industrial applications.

To learn more about CRU’s services, visit www.crugroup.com.