Aluminum market update: Stability amidst broader movements

Market dynamics and scrap prices

Due to the tightening in the aluminum market, we have seen prices are on the rise. We are being told by our sources in the industry that UBC has been trading at $0.96/lb, 3003 Bare at $1.17/lb, and 6063 New Bare Extrusion at $1.175/lb. Other notable prices include 6063 NP Extrusion at $1.115/lb, 6061 Extrusion at $1.045/lb, 10/10 Extrusions at $1/lb, 6061 Sheet/Plate/Clip at 98.5c/lb, and High-Grade Aluminum Turnings at 84c/lb and Litho at $1.09/mt. Old Sheet Aluminum is priced at 86.5c/lb. In the Midwest, we see painted siding priced at 96.4c/lb, and NP Painted Siding at 97.5c/lb. Clean car rims are said to be trading at $1.11/lb, dirty wheels at $1.09/lb and 6022 Auto Clip at $1.05/lb.

Even with the increase in prices, demand is projected to stay sluggish for the remainder of the year, as yard activities remain slow and overall manufacturing demand persists in being weak.

Renewable energy partnership between Hydro and Macquarie

Today, Hydro announced the completion of the sale of 49.9% of its renewable energy company, Hydro Rein, to Macquarie Asset Management. The transaction, valued at $333 million as of June 30, 2023, will see Macquarie contributing $214 million at closing, with the remaining funds to be transferred by June 25, 2024. Hydro Rein is now a joint venture, with Hydro holding 50.1% and Macquarie 49.9%. The joint venture includes all of Hydro Rein’s assets in Brazil, Denmark, and Sweden, as well as Energy Solutions projects and future projects in Norway, excluding potential onshore wind projects near Hydro’s smelters.

Hydro and Macquarie have been collaborating on renewable energy projects since 2017, developing 1.3 GW of capacity, including a 456 MW onshore wind farm in Brazil. These projects include power purchase agreements aimed at helping Hydro decarbonize its operations.

Press Metal and Nanshan Aluminum forge new partnership

Last Friday, Malaysia’s Press Metal and China’s Nanshan Aluminum announced a new deal, extending their partnership. Press Metal will trade its 25% ownership in Bintan Alumina Indonesia for a 25.6% stake in Nanshan Aluminum. Following this transaction, Nanshan Aluminum plans to list independently on the Hong Kong Stock Exchange to secure future growth funds. This move is set to be completed by July 31, after which Nanshan will apply for its initial public offering.

Bintan Alumina operates a 2 mt/y alumina refinery in Bintan, Indonesia, and is planning a $6 billion expansion by 2028. The refinery is part of the Galang Batang Special Economic Zone and includes its own power facility and private port.

HAI celebrates new developments

Hammerer Aluminum Industries (HAI) has completed a new P61 extrusion press and opened a new logistics center at its Ranshofen, Austria site, marking the completion of a €125 million investment package. CEO Rob van Gils expressed pride in these developments, highlighting HAI’s leadership in producing lightweight aluminum components for the transport sector.