CRU: Japanese shipments lag, Constellium partners with Tesem and more

The Japanese Aluminium Association last week released its latest shipment data for August. Despite a strong July that suggested demand in Japan could be on the path to recovery, the August report showed a move back to contraction for both rolled products and extrusions.

Indeed, the production of rolled products in August totaled 72,969 t – a drop of 3% year-over-year (y/y) and the first monthly contraction seen since March (-15.9% y/y). As for extrusions, the sector did move back to growth in July (+5.2% y/y) for the first time since December 2021, but this looks to have been a one-off as the production of extruded shapes is back to a decline of 10.9% y/y in August.

As for the end-use markets, it was weakness all around

For rolled products, shipments to the food and beverage market, i.e. the biggest end-user, were down 10.5% y/y in August from a growth of 4.9% y/y in July. As for transport, shipments were down 15.7% y/y in August, much worse than the decline of 5.9% y/y seen in July.

On extrusions, shipments to building and construction, i.e. the biggest end-use market, were down 14.1% y/y in August despite moving briefly to growth in July (+5% y/y). Finally, shipments to transport, also a large end-use market, were down 13.6% y/y in August from a growth of 3.1% y/y in July.

US shipments of extruded shapes down more sharply in August, latest data shows

The latest shipment report by the U.S. Aluminum Association also shows weaker trends for August. According to the association, shipments of extruded products in North America totaled 369 million pounds in August, representing a decline of 4.8% y/y and down 5.5% for the YTD period up to August. More significantly, this is weaker than the decline of 0.6% reported in July 2024 versus July 2023.

Overall, the sector has been in contraction mode since June 2022, with the trend looking weaker recently. This comes in contrast with rolled products as shipments have shows y/y growth consistently every month since August 2023. However, the recovery remains fragile, with the latest report for August showing a small growth of 1.6% y/y. This is down from the 4% y/y growth reported in July and much less than the peak of over 14% seen in February this year.

Novelis announces restart of Sierre plant in Switzerland

Novelis has recently announced the restart of its Sierre plant in Switzerland after it was hit by a flood at the end of June. The producer said the plant could be restarted at the end of September and expects production to resume by the end of October.

“In addition to the priority of restarting our system quickly and safely, mitigating the impact on our customers and suppliers during this extraordinary situation has been at the forefront of our business,” said Emilio Braghi, Executive Vice President of Novelis; and President of Novelis Europe. “I am incredibly proud of the speed and flexibility our company has shown, and the resilience and determination of our workforce to overcome adversity and get our assets back up and running in record time.”

EGA secures majority stake in Spectro Alloys, expanding US recycling presence

Today, EGA announced the completion of the acquisition of a majority stake in American aluminum recycling firm Spectro Alloys Corporation. The U.S. was already one of EGA’s largest global markets. In 2023, EGA sold approximately 550,000 tons of primary aluminum in the country, the statement says. EGA has acquired 80% of Spectro Alloys, with the company’s owner-managers retaining a 20% shareholding. Funding of the transaction is in accordance with EGA’s green finance framework which was announced earlier this year.

Spectro Alloys is a leading secondary foundry alloy producer in the U.S., with some 110,000 tons of aluminum ingot production. The company is implementing an expansion plan at its Rosemount site that will add around 55,000 tons per year of secondary billet production, which is expected to be completed in 2025.

Portland Aluminium secures new energy contract

Alcoa announced an agreement with AGL Energy Limited (AGL) to support future operations at its Portland smelter in Victoria, Australia. The 9-year agreement covers 287 MW of power supply and will take effect from July 1, 2026. Together with a 300 MW contract finalized with AGL in 2023, the contract will support smelter operations to mid-2035. The combined contracts will enable the smelter to produce up to 95% of its nameplate capacity of 358,000 tons of aluminum per year. Currently, smelter production averages at about 80% capacity.

Approximately 40% of the smelter’s consumed electricity is derived from renewable sources, including electricity generated by the nearby Portland wind farm. The new agreement is underpinned by power sourced from across AGL’s diverse portfolio. It includes an option to replace up to 30% of the contracted volume with a renewable power purchase agreement with AGL. Alcoa also continues to explore other opportunities to bring more renewables into the smelter’s longer-term energy mix. Portland Aluminium Smelter has memorandums of understanding with the onshore Kentbruck Green Power Hub and with Alinta Energy to collaborate on the proposed Spinifex offshore wind farm.  

Constellium announces partnership on closing the loop in recycling

Constellium announced a partnership with Tesem – a global leader in luxury packaging – to advance sustainable aluminum production through an initiative called “Closing the Loop”.

Through this partnership, Constellium will work closely with Tesem to create a closed-loop system that enables the recycling of high-purity aluminum. Tesem has invested in enhancing their assets to ensure the efficient cleaning and preparation of aluminum scrap. Both companies’ research and development (R&D) teams have collaborated to ensure the scrap meets the strict quality standards, and to adjust casting parameters to integrate higher levels of recycled material.

This innovative approach will allow Constellium to supply Tesem with aluminum coils that have a significantly reduced carbon footprint. Constellium is supplying Tesem with highly specialized aluminum surfaces from its rolling mill in Singen, Germany.

Vedanta announces new certification for its wire rod and rolled products

Vedanta announced Friday that it has become “the first and only company” in India to have been certified by the Bureau of Indian Standards (BIS) for its wire rod and rolled products.

The certification applies to products manufactured at both its BALCO facility in Chhattisgarh and Jharsuguda unit in Odisha. According to the statement, the Department for Promotion of Industry and Internal Trade (DPIIT) now requires that all aluminum wire rods and rolled products (sheets, plates, and strips) sold in India be certified by the BIS.

On Aug. 31 2023, the Indian Ministry of Commerce and Industry together with the Ministry of Mines introduced a regulation for the quality control of aluminum and aluminum alloys. Vedanta Aluminium holds BIS certification for a wide range of aluminum products, including 12 mm wire rods, rolled sheets, rolled conductor plates, rolled plates, EC ingots, alloy ingots and primary ingots. The company now boasts seven BIS certifications across 17 products.