Watch In Awe As This Piece Of Aluminum Levitates and Liquifies

I know what you’re thinking. “What’s that? That thing up there. What the hell is it? Seriously, I really need to know. It’s not funny, I’m freaking out here. TELL ME WHAT THE F*CK THAT THING IS RIGHT NOW!” I get that a lot. Thankfully, this time people aren’t talking about the tattoo of Guy Fieri on my forehead. What you’re looking at is a melting piece of aluminum floating in an electromagnetic induction heater. Here’s a video of it in action:

Read more: http://www.uproxx.com/gammasquad/2014/04/watch-aluminum-levitates-liquifies/#ixzz2xzSeabHB

Alcoa Wraps Up Aluminum Lithium Expansion

Aluminum giant Alcoa Inc. (AA - Analyst Report) announced that it has completed the expansion of aluminum lithium alloy production capacity at its Kitts Green plant in the UK to meet the growing demand for aluminum lithium alloys. Alcoa expects revenues from aluminum lithium to rise four-fold over the next six years to nearly $200 million.

The Kitts Green expansion, which is the second phase of the three-part expansion, allows airframers to build fuel efficient and lower-cost airplanes versus composite alternatives. Alcoa stated that the Kitts Green expansion will allow the company to serve the growing demand for its third generation aluminum lithium alloys better. According to Alcoa, the new aluminum lithium alloys provide excellent performance in terms of stiffness, damage tolerance and resistance of corrosion.

At the last Paris Air Show, the third-generation aluminum lithium alloys showed that they have the potential to increase fuel efficiency, reduce inspection intervals, improve passenger comfort and lower capital costs for aerospace manufacturers. Alcoa received a very positive response, where the demand exceeded its production capacity. This encouraged Alcoa to take initiatives for expanding its aluminum lithium operations at three locations across the globe.

Alcoa’s third phase of expansion, which is a $90 million facility adjacent to its Lafayette, Ind. plant, is currently under construction. The expansion is expected to be completed and be online by the end of 2014. Alcoa expects the facility to produce additional 20,000 metric tons of aluminum lithium.

Alcoa, which is among the prominent players in the mining industry along with Aluminum Corporation of China Limited (ACH), Atlatsa Resources Corporation (ATL - Snapshot Report) and BHP Billiton Limited (BHP - Analyst Report), is a world leader with respect to production and management of primary aluminum, fabricated aluminum, and alumina as well as the world’s largest miner of bauxite and refiner of alumina.

http://www.zacks.com/stock/news/102015/alcoa-wraps-up-aluminum-lithium-expansion

Columbia Falls Aluminum's reopening increasingly uncertain

KALISPELL – Despite occasional glimpses of hope that the Columbia Falls Aluminum Co. plant would resume operations, the shuttered facility’s future is more uncertain than ever as the U.S. Environmental Protection Agency begins investigating the site for hazardous pollutants and skepticism over the prospect of a long-awaited power deal mounts.
And while officials say neither a federal cleanup nor a site investigation would automatically preclude the plant from reopening if a deal was brokered, the scenario seems increasingly unlikely, though not out of the question.
“We came close a couple times. Most recently we had some Christmastime hopes that there was going to be an announcement that they would reopen,” Virginia Sloan of U.S. Sen. Jon Tester’s office told the Flathead Basin Commission at its meeting Wednesday. “We’ve been disappointed several times when they led us down a path of hopefulness and it did not happen. Some folks say it has been idle too long.”
Negotiations to coordinate a power deal between Glencore, the Swiss commodities giant that owns the plant, and the Bonneville Power Administration have plodded along for years without coming to fruition. Meanwhile, frustration has grown in the beleaguered community of Columbia Falls, where the plant’s closure in 2009 forced the layoff of nearly 90 workers as high energy prices and poor market conditions made operations unprofitable.
The lack of action recently prompted Tester to publicly criticize Glencore for misleading him, the BPA and the community of Columbia Falls. In an effort to steer the plant’s future in a new direction and mitigate potential hazards to the environment and human health, Tester and fellow Democratic U.S. Sen. Max Baucus sent a letter to the EPA urging a study of contamination levels at the plant to determine whether it should be declared a Superfund site – a designation that could create cleanup-related jobs and provide a boon to the economy.
A Glencore official has agreed to visit the plant this month, Sloan told the Flathead Basin Commission, which signals that the company, the largest commodities trading group in the world, may be taking a serious look at its options, particularly as it may be charged with footing the bill if a cleanup is warranted.
“At least we know we’ve got their attention,” Sloan said of the planned site visit by Glencore official Matthew Lucke, who works out of Glencore’s headquarters in Switzerland.
The Flathead Basin Commission, which was formed in 1983 to monitor and protect water quality in the Flathead Basin, invited Sloan and Julie DalSoglio, director of the EPA’s Montana office, to update the group on the potential for contamination of soils, groundwater and air.
The Montana senators requested an evaluation of the 120-acre industrial area because it has not been inspected since 1988 and may pose a threat to the community and jeopardize future economic development. The plant continued to operate for more than two decades after the most recent inspection.
Officials with the EPA and the Montana Department of Environmental Quality agreed that another inspection of the smelter plant was overdue, and said they will work closely with the public to keep them formed.
“I hope there is a robust, transparent opportunity for the public to be very involved in this process. Communication is really key, and that is one thing that EPA has promised,” Sloan said.
EPA officials will assess risks posed by the plant’s decades-long handling of hazardous materials, including cyanide, zinc and a host of other raw materials common in industrial use. The agency will gather environmental data from the plant’s solvent landfills and wastewater ponds that handled plant discharge.
The initial investigation, slated to begin this summer, will likely take one year, DalSoglio said, while an additional year will be spent assessing the data and reviewing public comment. The EPA could spend another two years on enforcement actions and cleanup approval; depending on the complexity of the site, the actual cleanup could require between two and five years, she said.
http://missoulian.com/news/local/columbia-falls-aluminum-s-reopening-increasingly-uncertain/article_b15f9f0e-a251-11e2-bab4-001a4bcf887a.html

Aluminum Prices Post Biggest Weekly Decline in 14 Months

Aluminum fell, capping the biggest weekly drop in 14 months, on signs that increasing output in China will add to a global glut. Global output increased 5.7 percent in January from a year earlier to 3.917 million metric tons, the International Aluminium Institute said Feb. 20. Chinese production surged 16 percent, the IAI figures showed. Production exceeded demand by 419,400 tons last year, figures from the World Bureau of Metal Statistics showed this week. “The high production is not helping reduce the supply surpluses on the global aluminum market, which are still reflected in high inventory levels,” Commerzbank AG analysts including Frankfurt-based Daniel Briesemann said in a report. “The high supply is likely to block any significant increase in aluminum prices.” Aluminum for delivery in three months dropped 1.3 percent to settle at $2,048 a ton on the London Metal Exchange at 5:51 p.m. local time. This week, the price tumbled 5.5 percent, the most since late November 2011. The commodity fell for the fifth straight day, the longest slump in two months. Inventories monitored by the LME climbed 0.1 percent to 5.16 million tons, the highest in more than three weeks. Copper for delivery in three months fell 0.8 percent to $7,801 a ton ($3.54 a pound). This week, the price plunged 4.9 percent, the most since December 2011. The metal dropped for the sixth straight session, the longest slump in two months. Zinc and lead declined, while nickel gained. Tin was little changed. In New York, copper futures for May delivery decreased 0.5 percent to $3.5505 a pound on the Comex. Yesterday, total volume rose to a record 128,326 contracts, topping the previous all-time high of 127,276 on April 10, CME Group Inc., the Comex owner, said today. On Feb. 6, open interest jumped to a record 184,257 contracts, Chicago-based CME Group said. http://www.bloomberg.com/news/2013-02-22/aluminum-drops-for-fifth-day-as-china-output-adds-to-supplies.html

Reliance Steel & Aluminum Beats Analyst Estimates on EPS

Reliance Steel & Aluminum (NYS: RS) reported earnings on Oct. 25. Here are the numbers you need to know.
The 10-second takeaway For the quarter ended Sep. 30 (Q3), Reliance Steel & Aluminum missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share increased significantly.

Margins grew across the board.
Revenue details Reliance Steel & Aluminum chalked up revenue of $2.06 billion. The eight analysts polled by S&P Capital IQ predicted sales of $2.12 billion on the same basis. GAAP reported sales were 3.9% lower than the prior-year quarter's $2.14 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details EPS came in at $1.30. The 12 earnings estimates compiled by S&P Capital IQ forecast $1.19 per share. GAAP EPS of $1.30 for Q3 were 15% higher than the prior-year quarter's $1.13 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details For the quarter, gross margin was 26.0%, 290 basis points better than the prior-year quarter. Operating margin was 7.4%, 80 basis points better than the prior-year quarter. Net margin was 4.8%, 80 basis points better than the prior-year quarter.
Looking ahead Next quarter's average estimate for revenue is $2.04 billion. On the bottom line, the average EPS estimate is $1.07.
Next year's average estimate for revenue is $8.66 billion. The average EPS estimate is $5.26.
Investor sentiment The stock has a four-star rating (out of five) at Motley Fool CAPS, with 548 members out of 572 rating the stock outperform, and 24 members rating it underperform. Among 128 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 121 give Reliance Steel & Aluminum a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Reliance Steel & Aluminum is outperform, with an average price target of $61.92.

http://www.dailyfinance.com/2012/10/27/reliance-steel--aluminum-beats-analyst-estimates-/

Novelis CEO: Aluminum price hurt by supply

--Novelis CEO expects aluminum price to hold near current levels for 9-12 months

--Company is using more recycled aluminum

--Novelis reports quarterly income of $91 million, up from $62 million a year earlier

(Adds recycling strategy, market outlook, expansion plans and auto shift details)

Aluminum prices are likely to stay near their current low levels for the next nine to 12 months, pressured by a supply overhang of the lightweight metal, the chief executive of aluminum products maker Novelis Inc. said Tuesday.

Benchmark aluminum prices on the London Metal Exchange have traded near two-year lows for weeks, on a surplus of metal and production capacity, as well as on worries about demand amid slowing growth in China and the financial struggles in the euro zone.

Aluminum for delivery in three months recently traded at $1,849 a metric ton, down from almost $2,600 a metric ton a year ago.

Prices are likely to "hover at this level" for as much as a year, Novelis Chief Executive Phil Martens said in an interview. He said the smelter shutdowns some aluminum makers had announced in an effort to avoid lower prices were helping to balance the market, but "we just don't see the market dynamics pushing (prices) back to the $2,600 level."

Novelis, Mr. Martens said, was trying to limit its exposure to LME pricing by using more recycled aluminum. Low prices are "just a reminder that the strategy we're on is the right strategy. We're beginning to see the resilience in our business model."

The company expects to boost its use of recycled aluminum, which costs less than new metal, to 80% by 2020. The benefit from using recycled material was limited this year, Mr. Martens said, as LME prices fell closer to the cost of scrap.

Mr. Martens said he was most confident in automotive and can demand for the balance of 2012, and more cautious toward the outlook for consumers in the electronics and construction sectors. Novelis supplies companies such as Coca-Cola Co. KO +0.20% , Ford Motor Co. F +0.43% , and Samsung Electronics .

Atlanta-based Novelis on Tuesday reported a 20% increase in net income during the three months ended June 30 as lower costs made up for declines in shipments and sales. During the fiscal first quarter, Novelis reported net income of $91 million, up from $62 million during the same period a year earlier.

Aluminum shipments fell 6% from a year ago. Revenue slumped 18%, to $2.6 billion on the decline in shipments and lower aluminum prices.

The company expects to report negative free cash flow, or operating profit less investments and asset sales, to be negative through 2012 as the company invests in expansion projects. Novelis expects capital expenditures of $650 million to $700 million during the fiscal year that started in April, from $516 million the prior year, as it expands rolling mills in Brazil and South Korea and automotive capacity in the U.S. and China.

Novelis has shifted its focus away from lower-margin businesses such as foil, selling or closing plants while refocusing products for the automotive and electronics industries. Automotive business now totals about 10% to 12% of the company's shipments, Mr. Martens said, up from 6% to 7% a year ago. Beverage and food cans account for more than half of the company's shipments.

Novelis is a unit of Indian aluminum producer Hindalco Industries Ltd. . Novelis is the world's largest producer of rolled aluminum, which is used in beverage cans, packaging, automobiles and electronics, among other applications. 

http://www.marketwatch.com/story/novelis-ceo-aluminum-price-hurt-by-supply-2012-08-14

US- Alcoa and the aluminum survival handbook

Alcoa is something of a corporate bellwether for the global aluminum industry. The US company's operations span the full gamut of the light metal's value-added chain from mining the bauxite needed to produce the stuff all the way through to specialist engineered products tailored to meet the requirements of aerospace and automotive customers. Its Q2 results, therefore, provide a telling snapshot of the strains on the entire aluminum sector resulting from the current price weakness. On the London Metal Exchange (LME) benchmark three-month aluminum hit a one-year low of $1,832 per ton in June. As with the other base metals traded on the LME an early-July rally has quickly run out of steam and aluminum is once again foundering around the $ 1,900 level. So no particular surprise as to the prime cause of the slide in Alcoa's headline earnings from net income of $ 94 million in the first quarter of the year to a net loss of $ 2 million in the second. While downstream divisions performed well, and with rolled products even generating record operating income in the first half of the year, Alcoa's primary metals business took a $ 58-million sequential hit from the lower aluminum pricing environment. There was some clawback from currency effects, $ 19 million, and from higher physical market premiums, $ 15 million. But not enough to stop the division sliding into the red in Q2 to the tune of a net $ 3 million. All of which palpably frustrates Klaus Kleinfeld, Alcoa president and chief executive officer. After all, Alcoa is still projecting global demand growth of 7 percent this year, split between 11-percent growth in China and 3 percent in the rest of the world. If even close to the mark, this would be a remarkable outcome given the combination of engineered slowdown in China and far-from-engineered slowdown just about everywhere else. But then aluminum is leveraged to key growth sectors such as automotive, where it is gradually winning a long-term materials battle with steel, and aerospace, characterized by an order backlog stretching to years and an ageing commercial airline fleet. Stocks of aluminum, according to Alcoa, may still be high but at 76 days' global usage they are down on the 102-day peak seen in 2009 at the height of the Great Contraction. The price of aluminum, argued Kleinfeld on the Q2 analysts call, has decoupled from this fundamental demand strength, becoming subsumed within the general macro risk-on-risk-off trade that has dominated all asset classes ever since. That is at least partly true. Many base metals have become more closely correlated with other asset classes over the last four years. But there is the thorny question of whether the world is still producing too much aluminum, which could of course be one fundamental reason why the price is where it is. Alcoa thinks not, forecasting a global 515,000-ton production deficit this year. It's a nigh unprovable proposition given the opacity of the aluminum sector, not least in China, both the world's largest consumer and producer. In short, you're going to have take Alcoa's word on it. And Alcoa, in Kleinfeld's words, is going to have to "let the market do what the market is going to do." Since the market is stubbornly declining to reflect Kleinfeld's optimistic analysis of aluminum's "sound fundamentals," Alcoa's ongoing response is something of a survival handbook for every other margin-compressed producer. Alcoa is "targeting every single lever that we have" to improve group productivity from stream-lining purchasing to more efficient scrap usage to maximizing products capability to reducing days' working capital. But at the core of the strategy is the company's five-year plan to move 10 percentage points down the global aluminum cost curve from 51st percentile in 2010 to 41st in 2015. And here smelter portfolio management is key. If smelters have been idled for several years with diminishing chances of ever reopening, dismantle them. Alcoa has permanently closed 291,000 tons of capacity, comprising all of the Tennessee smelter and one-third of its Rockdale smelter in Texas. If smelters are not competitive at lower prices, idle them. Alcoa is in the process of mothballing some 14 percent of its global metal capacity, mainly in Spain and Italy. Such action can, of course, be presented to the wider world as taking global leadership in response to difficult market conditions. And if you curtail primary smelter capacity, you may as well curtail alumina capacity, as Alcoa has done with 390,000 tons of its intermediate product capability. If government levers can be used to preserve struggling smelters, use them. Alcoa has been reviewing the future of both its Point Henry smelter in Australia and its Brazilian smelter operations. Point Henry has just been given a stay of execution until at least mid-2014. An assistance package worth more than A$40 million from the Australian government may have helped. In Brazil Alcoa "has raised the issue of competitiveness, or lack of it, on energy prices," the single more important input variable in any smelter's profitability profile. Kleinfeld told analysts that "I believe there are going to be actions taken sooner rather than later" by the Brazilian government. And finally, if you can't beat new lower-cost entrants to the global aluminum sector, join them. Alcoa is building an ultra-low cost integrated alumina-aluminum-products facility in Saudi Arabia. The 740,000-ton per year smelter component of the Maaden project is on schedule to start production next year. This is the law of the jungle. Remember the old joke. You don't need to outrun the lion, just the guys running with you. The only problem is the cost curve itself. The most obvious point is that it is never static, largely because everyone is simultaneously trying to move down it, redefining it as they do. This is what is happening in China with smelter capacity migrating from east, where power availability is restricted and prices accordingly high, to west, where stranded coal deposits afford much lower power prices. And it's happening elsewhere. Alcoa is not the only producer migrating capacity to the Middle East to tap into the region's abundance of energy. Rio Tinto and Hydro have already done so with new smelters in Oman and Qatar respectively. A more fundamental issue with cost-curve economics in the aluminum market, though, is the gap between theory and reality. If governments are prepared to subsidize power prices, as is the case with an estimated 25 percent of Chinese aluminum capacity right now, then evidently the cost curve is not what it should be on paper. This isn't just about China, witness the Australian government's helping hand to Alcoa's Point Henry smelter and the Brazilian government's consideration of the "competitiveness, or lack of it" in local energy prices. The resulting problem is, to quote researchers at Barclays Capital, that such "interventions disrupt efficient market mechanisms resulting in distortions and dislocations with bearish implications for fundamentals and prices." Government assistance negates the cost curve at precisely the point it should be effective in matching supply to demand. As a consequence, as BarCap points out, the market will remain prey to over-production resulting from the build-out of excess capacity. You may well believe Alcoa's contention that enough capacity has been cut to generate a market deficit this year. If you don't, however, the implication is that prices must go lower to compensate for non-market intervention. And what will the cost curve look like by 2015? Will Alcoa have achieved its goal of being in the 41st percentile? Or will it need a new five-year plan to replace the current one? This chase down the aluminum cost curve is one without obvious end. Alcoa must keep running. So too must every other producer. - Andy Home is a Reuters columnist. The opinions expressed are his own. http://www.menafn.com/menafn/1093534034/US-Alcoa-and-aluminum-survival-handbook