Aluminium solutions for automotive and building sectors

Sapa President & CEO Egil Hogna recently witnessed new developments related to both sectors at company sites in Gloucester and Tewkesbury, both in the UK.

The visits were part of Hogna’s 100-day programme, in which he is travelling to company locations and meeting employees around the world. He joined Sapa as its chief executive on September 1.

First at the Gloucester plant, which employs 140 people, one of the first stops made by Hogna (pictured in orange helmet) and local management was to examine the facility’s fabrication processes and quality tracking system. The majority of the work done at the site is for the automotive market, and includes extruded aluminium roof rails, trim pieces and tread plates. Product and process innovation are priorities at the plant.

In the quality lab, he was shown the various coating assessments done to roof rails and trim accessories. “This should be the ‘temple’ of the plant,” said Hogna.

Customer service

Sapa’s facility in Tewkesbury is about 30 minutes from the Gloucester plant – and it is vastly different.
The site is part of Sapa’s aluminium building systems business area, providing customers with branded solutions that add value. These include doors, windows and curtain walling products.

Together with managing director Nigel Sissons and operations director Nigel Eley, Hogna walked through the facility starting from kit assembly. He also spent time listening to the company’s comprehensive customer service strategy.

2016 Nickel price forecast

Nickel Drivers

1 China GDP & PMI Data

2 Dollar to Euro exchange rate

3 Philippine exports

4 Indonesia export ban

5 Nickel inventory

As we discussed in one of our monthly reports, many nickel producers thought that prices would climb on the back of the Indonesian export ban. However, what they did not anticipate involved the alternative supply from Philippine suppliers who have taken up the shortfall. This caused nickel prices to fall more sharply than other metals this year. After exports from Indonesia had fallen, the country had considered the option of relaxing its ban on mineral exports to allow for nickel shipments.

However, Indonesia recently decided to retain its export ban. We doubt this will cause prices to rally. Thanks to the Philippines’ higher production, supply remains ample and the real issue involves weak demand. Like with most base metals, China is responsible for over 40% of global nickel demand. Although US data might look encouraging, China consumes 5 times more nickel than the US so growth here can’t make up for the drop in Chinese demand. The slump in prices now has nickel miners rethinking output. Australian miner Mincor Resources said this year it will reduce production by 56% during the second half, as it can’t sustain operations at current price levels.

Poseidon Nickel, another Australian miner also shuttered production by placing its Lake Johnson mine into care and maintenance. While some of the smaller mines have struggled, the bigger producers remain in a stronger position as they have maintained production because of scale and lower costs. With a large inventory of nickel ore, refined metal on exchanges and adequate supply of ferro-nickel, the fundamentals don’t suggest a strong argument for nickel prices to rise unless China demand picks up or production is taken offline.

The Outlook

Nickel prices have fallen sharply over the past year. The lows of 2009 ($8,700/mt) might provide support over the coming months but this support level could easily be broken over the course of 2016 if conditions remain bearish. Buyers should consider fluctuations below $13,310/mt as normal within this falling market, and reassess their strategy if prices break the $13,310/mt level. Based on current market conditions we could see 3M LME nickel averaging $9,500/mt next year.

Detect-Metals provide kinds of nickel alloy with best price 2016.

Effect of heat treatment on the microstructure and properties of 2024 aluminum alloy

Aluminum and aluminum alloy is the largest amount of non-ferrous metals, the highest yield of material, is a pillar industry of the national economy, widely used in aviation, transportation, building materials, machinery, packaging and other industries, is also an important defense material. 2024 co-metal Al-Cu-Mg-based high-tough aluminum alloy, due to the high strength, heat resistance, excellent formability and resistance to damage and other characteristics, has become the main structural materials for the aerospace industry it has. Therefore, exploring new heat treatment process system, improve the overall performance 2024 aluminum alloy has great practical significance.

Solution treatment incubation times are 50min, the solution temperature was 460,480,500 and 520 ℃, the use of the installed furnace temperature, after the solution is complete, remove the cooling fast. Research on the impact on performance solution time is about 500 ℃ sample into a heat treatment furnace insulation 30,50,70 respectively and 90min, after the solution is complete, remove the cooling fast. When the impact of aging on the performance of research, the first sample was 500 ℃ × 50min the solution treatment, then the sample at different temperatures for a long time of aging heat treatment, and every once in a while to test the mechanical properties of a sample. Aging temperatures were 130,170,180,190 and 210 ℃. Using the installed furnace temperature, cooling method for quick cooling. Quickly removed after every 1h, rapid cooling hardness test, then quickly back into the heat treatment furnace continued aging heat treatment, a total aging time of 15h.

Heat treatment process has on the microstructure and properties of 2024 aluminum alloy is a significant impact, the higher the solution temperature, the alloying elements, the greater the concentration of the solid solution, a solution to improve the degree of concentration after quenching supersaturated solid solution of the higher, Aging will have a higher strength; with the holding time, the alloy hardness first increased and then becomes more gentle, and decreased. Hardness aging temperature increases, the arrival time of the peak aging required shorter, the faster aging, 180 ℃ aging reached the highest peak value and timeliness arrived; at 500 ℃ solid solution heat 50min, peak hardness values ​​appear highest.

2016 Aluminium price forecast

As the world’s majority producer and consumer of aluminum, China will always have an impact on the metal’s prices, but given the economic distress experienced by China in recent months, all eyes are on aluminum and the Far East in 2016.

We’ve identified the main price drivers for aluminum next year as:

1 China GDP & PMI Data

2 China export volumes

3 Dollar to Euro exchange rate

4 Oil prices

5 Primary aluminum production

6 MW Premiums

7 Capacity utilization

8 European & Japanese premiums

China accounts for more than half of the world’s aluminum output and consumption. The aluminum surplus in China has widened over the last few quarters, which caused a surge in aluminum exports, distorting the global supply-demand balance. Current prices however have already made Chinese aluminum exports unprofitable. Although exports have fallen in recent months, they are still up 22% compared to last year.

A falling Yuan could make Chinese exports more competitive but sinking aluminum prices could eventually cause a sustained drop in exports, reducing the glut in supplies. Many aluminum producers including Century, Alcoa and Rio Tinto have already cut production and moved to more efficient smelting production. On top of that, aluminum premiums have dropped more than 67% this year, placing even more pressure on the profitability of domestic producers. Over the last three months, premiums appear to have stabilized at lower levels.

Despite the fact that low prices have already caused producers to cut production, we believe that it will still be a while until aluminum prices make a substantial upward price move. Weak demand puts pressure on prices as China’s manufacturing, automobile and real estate activity (though some portions of the Chinese construction market appear healthier) continue to sag. Moreover, while we continue to see a strong dollar and fears about China, investors appear to have little incentive to buy aluminum.

The Outlook

At some point, prices will make a comeback but until we see signs of a bottom, we continue to expect lower prices as we enter 2016. Based on current market conditions, we could see 3M aluminum prices averaging $1,550/mt in 2016. The lows seen during 2009 ($1,350/mt) could act as a support through the year. Buyers should consider fluctuations below $1,840/mt as normal within the falling market, and reconsider their strategy if prices break above this resistance level.

We look forward to the development of the aluminum industry getting better in 2016.

Aerosols and aluminium foil “widely” collected for recycling

According to new figures released by the Aluminium Packaging Recycling Organisation, Alupro, 96% of UK councils are collecting aerosols, and 86% are collecting aluminium foil, for recycling.

Over the past three years, the number of councils collecting aerosols has increased from 87% to 96%, providing almost complete coverage throughout the UK. Meanwhile, foil recycling has also seen a dramatic increase in collection, from just 35% of councils in 2007 to 86% today.

“Alupro provides local authorities with free materials to explain how to recycle empty aerosols, household foil and foil containers. We have also worked with councils and their service providers to dispel some of the myths about these materials being ‘difficult’ to recycle,” says Rick Hindley, Executive Director of Alupro. “We’re delighted to see how well councils have responded to this clear messaging, which has enabled more aluminium packaging to be recycled than ever before.”

“The latest Alupro statistics on kerbside collections indicate foil is now also eligible for Widely Recycled status,” said Jane Bevis, Chair of the On-Pack Recycling Label, OPRL. “We look forward to WRAP confirmation of this in our 2016 guidelines update, since we know 7 in 10 consumers act on this clear recyclability advice when they see it. 500 brands use our labels across hundreds of thousands of products, so that can make a real difference.”

Foil currently has ‘Widely Recycled at Recycling Points: Check Locally for Kerbside’ status under the On-Pack Recycling Label scheme. Once 75% of local authorities collect a material at the kerbside, this message changes to the simpler ‘Widely Recycled’ that consumers find so much easier to act on.