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

Ugprades for aluminum electrolytic capacitors boost frequency, lower impedance

Companies are also developing units with a longer service life, broader temperature range and compact designs.
High-frequency, low-impedance models are defining R&D trends in mainland China’s aluminum electrolytic capacitors industry. Makers are developing units exceeding 100kHz, at least 10 times what current variants support. They are pushing down the impedance to below 1.8 from 3mohm. Many companies are gearing up to close the gap with Taiwan and Hong Kong counterparts that have introduced 0.1mohm and even 50μohm types.
Businesses are likewise extending the life span and operating temperature range, especially for versions targeted at car audio systems and power supplies for electric and hybrid vehicles. Wuxi Antang Technology Electronics Co. Ltd is manufacturing such components specifically for automotive audio equipment. It ships all output to the US, Europe and South America.
Makers are extending the service life to 8,000 or more than 10,000hr as opposed to the current 1,000 to 5,000hr supported by most releases. As for the operating temperature, companies are setting their sights on 125 C, an improvement from the -40 to 85, 25 to 85 and -25 to 105 C of existing units.
Compact capacitors are rising in number as well. Buyers can look forward to V-chip types measuring 4 to 18mm in diameter. Axial models 4 to 10mm in diameter are also in the pipeline.
Many suppliers are hoping to expand production capacity, and toward this end are adopting advanced manufacturing and testing equipment. A growing number of them are gearing up to meet ISO, RoHS and other international quality requirements.
Still others are seeking to hire new employees to address delays in fulfilling orders.
Haimen Sancon Jetwell Electronics Co. Ltd can churn out 80 million units monthly but will invest $800,000 to increase output of bolt-type capacitors. The enterprise uses capacity, voltage, drain current and loss testers, and X-ray and RoHS analyzers in its 45 lead, 12 welding pin and three bolt capacitor lines. The main export destinations are India, Hong Kong, Taiwan, Russia and Turkey.
Makers see strong prospects for the line, especially amid the growing automotive industry. China’s car electronics market is forecast to expand further in the next 10 years. The government’s 12th Five-Year Plan supports the sector via credit financing and discounted export credit insurance rates, particularly for manufacturers of “new energy” vehicle technologies and other automotive systems.
Aluminum electrolytic capacitors, in particular, are poised for an uptick in demand. The product accounts for 34 percent of the country’s total capacitor output. China represented one -third of global sales last year, which reached $5.5 billion. This is forecast to hit $5.8 billion by end-2012.

http://www.globalsources.com/gsol/I/Aluminum-electrolytic/a/9000000123394.htm

Bodine Aluminum Donates $10,000 To P-L Tech Rebuild

Bodine Aluminum in Troy, recently presented a $10,000 check to Pike-Lincoln Technical Center for use in the rebuilding of the facility.
The main building of Pike-Lincoln Technical Center was destroyed in a fire on Dec. 2, 2011.  These funds may be used as local match for grant funding through the State of Missouri to purchase equipment or building materials.
Pike-Lincoln Technical Center has served the Pike, Lincoln and surrounding communities since 1973 through the offering of career and technical education programs to high school and adult students.  Current daytime programs include Administrative Business Technology, Auto Collision, Auto Services, Computer and Networking Technology, Diesel Technology, Digital Design, Health Sciences, Paramedic, Practical Nursing and Welding.  Students who attend Pike-Lincoln Technical Center receive skilled education leading directly to employment or further education after high school through apprenticeships, technical, community or four-year colleges.
Numerous tech center graduates have gone to work for Bodine Aluminum over the years. Pike-Lincoln Technical Center graduates often stay in the local community.
“We are excited to have the donation and commitment from Bodine Aluminum to help us continue our tradition of preparing residents to be productive employees and community residents,” said Krista Flowers, director of the school.
Bodine Aluminum has long been a supporter of the local community.  Many of Bodine’s philanthropic efforts focus on programs that enhance education and help foster technical skills of local students.  The recent donation to Pike-Lincoln Technical Center was presented by Terry Henderson, General Manager of Bodine Aluminum and Kathryn Ragsdale, Specialist for Corporate Affairs, Toyota, Bodine Aluminum.
For more information or to provide input on the rebuilding of Pike-Lincoln Technical Center programs, please visit www.pltc.k12.mo.us, call 573-485-2900 or e-mail, info@pltc.k12.mo.us

Birmingham Aluminum expands after funding is secured

An aluminium and multi-metals components manufacturer has expanded its West Midlands headquarters after getting financial backing.
Birmingham Aluminium has invested £300,000 in the purchase of the unit next door to its base on Farrow Road in Great Barr, along with additional machinery, after securing the funding through Yorkshire Bank’s Investing For Growth initiative.
The company, which employs a total of 24 people, and has increased turnover by 20 per cent to £3.06 million over the last 12 months, now has around 22,500 sq ft of space after buying the 7,500 sq ft unit.
Joint-managing director, Steve Kane, said the investment represented one of the biggest expansions in the company’s 16 year history and was made possible following a surge in demand for its products on the continent.
“Our overseas market has probably doubled over the last 18 months, and now represents around 15 per cent of our turnover, which is up by a fifth in the last year,” he said.
“One of the major reasons behind this growth has been due to the success of our website after we translated it into seven languages with help from the Birmingham Chamber of Commerce.
“Orders and enquiries from countries such as France, Germany, eastern Europe, China, the Benelux countries, Scandinavia, Australia and USA have really taken off over the last 18 months and have led to us being able to make this investment.”
Birmingham Aluminium produces around 7,000 products for the electronics, transport, drives and controls, leisure, security and furniture components sectors with its products found in anything from electrical goods to train engines.

Read More http://www.birminghampost.net/birmingham-business/birmingham-business-news/manufacturing-and-skills-business/2012/04/27/birmingham-aluminum-expands-after-funding-is-secured-65233-30854537/#ixzz1tJ7wvoqB

Noranda Aluminum Holding Beats Estimates but Has a Big Earnings Drop

Noranda Aluminum Holding reported earnings on April 25. Here are the numbers you need to know.

The 10-second takeaway For the quarter ended March 31 (Q1), Noranda Aluminum Holding met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Gross margins contracted, operating margins grew, net margins dropped.
Revenue details Noranda Aluminum Holding booked revenue of $353.5 million. The five analysts polled by S&P Capital IQ anticipated revenue of $352.0 million on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $394.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details Non-GAAP EPS came in at $0.18. The six earnings estimates compiled by S&P Capital IQ anticipated $0.06 per share on the same basis. GAAP EPS of $0.24 for Q1 were 57% lower than the prior-year quarter's $0.56 per share.

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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 13.9%, 290 basis points worse than the prior-year quarter. Operating margin was 10.8%, 30 basis points better than the prior-year quarter. Net margin was 4.6%, 510 basis points worse than the prior-year quarter.
Looking ahead Next quarter's average estimate for revenue is $373.8 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $1.49 billion. The average EPS estimate is $0.92.
Investor sentiment The stock has a three-star rating (out of five) at Motley Fool CAPS, with 33 members out of 36 rating the stock outperform, and three members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give Noranda Aluminum Holding a green thumbs-up, and none give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Noranda Aluminum Holding is outperform, with an average price target of $13.31.
Over the decades, small-cap stocks, like Noranda Aluminum Holding have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

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• http://www.msnbc.msn.com/id/47207472/ns/business-motley_fool/#.T5t2hlsWGnA

Indian aluminum majors expecting LME prices to show uptrend

BL reported that Indian aluminum majors are hopeful that the price of the metal on the London Metal Exchange may rise in the coming weeks as Euro zone leaders gear up to align their positions on centralized control of the euro zone budgets to fire fight the debt crisis.

After being on a steady decline for around the previous 6 months, aluminum prices gained USD 120 per tonne in the last 3 days in the wake of some positive signals from the euro zone.

Mr BL Bagra CMD of NALCO said that “The price of the metal tumbled from USD 2,700 per tonne in mid April to below USD 2,000 in the October to November period. If there is no fresh crisis we see the metal price on the LME being on a recovery phase.”

Mr Bagra however said that globally margins of aluminum producers will remain under pressure, due to the persisting spiral in energy costs. Today, one third of the existing capacity worldwide is operating on losses. On this count, India is better placed as cost of alumina is comparatively lower.

Mr D Bhattacharya MD of Hindalco indicated that the price of the metal on the LME will look better in the coming weeks.

Mr Bhattacharya said that the 3 major Indian aluminum producers Hindalco, Nalco and the London listed Vedanta have lined up ambitious expansion plans, expecting India, together with China, to lead in aluminum production in the next decade. The aluminum growth rate in India is expected to be 11% up to 2016 higher than that of China at 10%.

While Hindalco is doubling its existing capacity with an investment of about USD 10 billion by 2016, Vedanta is executing INR 60,000 crore expansion plan to add about 1.6 million tonne of fresh capacity to its existing 775,000 tonnes. Nalco is setting up a Greenfield unit of 0.5 million tonne capacity at a cost of INR 16,000 crore apart from another INR 6,000 crore to add 1 million tonne of alumina capacity.

Mr SK Roongta MD of Vedanta said that “We have already spent 75% of the CAPEX of INR 60,000 crore. We expect our new smelters to start production next fiscal and reach full capacity in less than 2 years. All the three producers are heavily banking on the Government's nod to allocate coal blocks, which could make aluminum production profitable at the desired level. We will be looking at coal assets once the policy initiative is in place.”
 http://www.steelguru.com/metals_news/Indian_aluminum_majors_expecting_LME_prices_to_show_uptrend/239664.html

Chinese aluminum manufacturers challenge Australian dumping duties

The sensitive issue of Australian manufacturers being put under pressure from dumped Chinese imports is set to be heard in the Federal Court, as two Chinese aluminum manufacturers challenge the Australian government's decision to impose dumping duties.

The case stretches to government relations, given submissions by the Chinese government against the dumping conclusions reached by the Australian Customs and Border Protection Service. The Chinese government has argued that it considers state-owned enterprises to be commercial bodies and should not be defined as public bodies under the anti dumping laws.

Customs however has found that regardless of ownership, the level of control and regulation by the Chinese government in the aluminum industry in China is so significant that primary aluminum producers and suppliers are in fact responding to the Chinese government's industrial development policy.

PanAsia Aluminum (China) Limited and Tai Shan City Kam Kiu Aluminum Extrusion Company Limited have lodged documents in the Federal Court, seeking to quash a decision of Attorney General Robert McClelland, who recently reaffirmed the dumping finding. PanAsia has had a countervailing duty of up to 13.6% imposed on its imports into Australia and Tai Shan of up to 7.4%.

In court documents, PanAsia said that the dumping duty notice and the countervailing duties, adversely affect its commercial position in the Australian market. The decision involved errors of law, and was an improper exercise of power, it claims. In the Kam Kiu case, the government has been asked to provide all documents on which customs based its dumping determination.

The aluminum saga began in May 2009 when ASX listed company Capral which had about half the Australian market for aluminum extruded product such as bars, tubes, pipes, doors and window frames notified the Australian Customs and Border Protection Service of alleged dumping.

During its investigation customs identified more than 300 importers of Chinese aluminum products. PanAsia and Kam Kui were identified in a group of seven importers which accounted for more than half the goods imported. The Australian market involves about 195,000 tonnes of goods sold a year.

Customs found that the subsidization and dumping of the Chinese aluminum had caused 'material damage'' to the local industry. Customs had determined that a range of Chinese imported aluminum products were priced at below normal value, and had used as a guide prices on the London Metal Exchange.

It found the Chinese products had been dumped with margins ranging from 2.7% to 25.7% and subsidized with margins from 3.8% to 18.4%. Capral had suffered a notable fall in sales and had been forced to lower its price to try to match the Chinese prices.

As a result of this investigation, the Australian government published a dumping notice and imposed countervailing duties on the Chinese companies in October 2010. In April, the Attorney General asked customs to reinvestigate some of its findings. Those findings were delivered, and in August Mr McClelland reaffirmed the dumping notice and duties.

http://www.steelguru.com/metals_news/Chinese_aluminum_manufacturers_challenge_Australian_dumping_duties/234409.html

Outlook for aluminum production

Aluminum production increased year-on-year in the first quarter of 2011, both in China and in the rest of the world.

Chinese production rose as producers re-started capacity that had been curtailed in the second half of 2010 in an effort to meet energy efficiency targets, according to a report from CRU, an independent business analysis and consultancy group focused on the mining, metals, power, cables, fertilizer and chemical sectors.

Smelters started to bring this capacity back on-line after the Chinese Lunar New Year in February. Alcoa estimated that 1.1 million tons of capacity a year has been re-started. Outside China, production re-starts have continued, although at a more moderate pace.

Chinese production will not only be supported by re-starts of curtailed capacity, but also by the start-up of new capacity in China's northern and western regions, such as Qinghai province and Xinjiang Uygur autonomous region, where power prices are cheaper.

Given the government's aim of increasing energy efficiency, Alcoa has factored in the closure of low amperage capacity; its China unallocated closures for 2011 and 2012 therefore reflect the stoppage of smelting capacity operating at or below 180 kiloamperes.

However, the Chinese authorities have recently announced that they are seeking to suspend approval of new projects.

This is unlikely to affect capacity currently being built, but it could affect future capacity growth, should this policy be rigorously implemented, and also bring forward the point at which China becomes a net importer of primary aluminum.

Alcoa expects primary consumption for aluminum in China to grow by 11.2 percent in 2011 to 18.7 million tons, and China is expected to be roughly self sufficient for the next few years before becoming a net primary importer from 2014 onwards.

The rail sector will be a major beneficiary of China's 12th Five-Year Plan (2011-2015). The nation has committed to expand its rail infrastructure, both long distance and urban mass transit, in the next five years. It has set aside 3.5 trillion yuan ($536.2 billion) for rail infrastructure, a 55 percent increase compared with the 11th Five Year-Plan period (2006-2010).

This amount will go toward the construction of high-speed rail, express rail, subway and light rail in cities, as well as coal railways.

The Ministry of Transport has expressed a desire to achieve a total rail network of 120,000 kilometers by 2015, a significant increase from the current network of 91,000 kms. Of the total investment, 850 billion yuan has been set aside for rail infrastructure development in 2011.

Government officials have publicly stated that at least 70 percent of equipment for any given rail project must be from domestic companies on a number of occasions. Aluminum demand will be boosted by this development, especially in the construction of high-speed rail.

As part of the energy policy in the 12th Five-Year Plan, China plans to generate 300 gigawatts of coal energy, 40 gW of nuclear power, 120 gW of hydropower, 70 gW of wind power and 5 gW of solar power to meet the needs of the country. The key energy bases will be located in Shanxi and Inner Mongolia and Xinjiang Uygur autonomous regions to serve the energy needs of demand centers in eastern and coastal provinces.

Alcoa expects aluminum demand to soar as a result. It will also be boosted by substituting copper, a practice that is more prevalent in China due to cost sensitivity and the absence of legacy issues where copper is already installed in wiring and cables in the country. It is seeing substitution to copper clad aluminum (CCA) cable and aluminum magnet wire in China from conventional copper products.

The automotive sector recorded a stellar performance in 2010. China comfortably strode past expectations, with annual production and sales exceeding 18 million units in 2010, registering a year-on-year growth rate of 32.5 percent.

Alcoa expects growth rates to fall back to a more sustainable level in 2011 as stimulus measures rolled out by the government to boost auto purchases in 2009 are withdrawn.

The aluminum usage for automobiles in China currently stands at an average of 127.5 kg per vehicle, compared with 145 kg a vehicle in the United States. As such, there is good potential to increase aluminum usage in automobiles and Alcoa expects this to catalyze demand for aluminum further.

To quell speculation in the property sector, the government imposed measures earlier this year including introducing property taxes in Chongqing and Shanghai, raising minimum down payments and banning second home purchases.

While these measures may have the effect of cooling the property market, aluminum uptake from the building and construction sector remains strong. 

http://www.chinadaily.com.cn/cndy/2011-07/07/content_12850980.htm

MCX Aluminum tumbles on global cues

Commodity reported that today the contract traded at arrange of INR 117.15 to INR 117.70 per Kilogram in the early sessions. Volume traded of the contract is 1867 lots and open interest of the contract is 1709 lots as of now.

Aluminum moved lower today eyeing counterparts that were trading lower in Indian commodity futures. The prices of benchmark Aluminum is trading at INR 117.20 per kilogram down 0.64%. Today the contract traded at arrange of INR 117 15 to INR 117.70 per Kilogram in the early sessions. Volume traded of the contract is 1867 lots and open interest of the contract is 1709 lots as of now.

Aluminum inventories on London metal exchange showed a considerable jump of 3150 tonnes to 4606100 tonnes. From the beginning of this year the inventories have appreciated from 4274975 tonnes. However the rise in inventories has been countered by improvement in economy of US and improving demand for vehicles in India and China in which Aluminum is a major component.
http://www.steelguru.com/metals_news/MCX_Aluminum_tumbles_on_global_cues/198299.html

Aluminum Producers in China ‘Losing Money,’ May Reduce Output

May 21 (Bloomberg) -- Aluminum producers in China are operating at less than the cost of production after domestic prices fell and the government raised power rates for smelters, said Liu Xu, an analyst at China International Futures Co.

All “producers in China are definitely weighing output cuts now,” Liu said today. “It’s based on how far prices have fallen, without even taking into account that the cost for some producers will increase after the new power rules.”

China, the world’s largest maker of the metal, said last week it will raise power surcharges for some aluminum companies by as much as 100 percent from June, to curb overcapacity. Aluminum in Shanghai has fallen 13 percent this year and London Metal Exchange prices have dropped 11 percent on concern that Europe’s debt crisis may derail the global economic recovery.

Producers in China are probably unprofitable, with an average production cost of 15,300 yuan a ton, said Wan Ling, a Beijing-based analyst at CRU International Ltd. That compares with today’s price on the Shanghai Futures Exchange of 15,105 yuan ($2,212), taking this month’s fall to 6.8 percent.

“At these prices all aluminum producers in China are losing money,” said Jia Zheng, a trader at Soochow Futures Co. “So far we haven’t heard of any output cuts yet. Producers will try to maintain output for a long as they can because it is costly and time-consuming to restart idled capacity.”

The metal used in cars and airplanes gained 0.4 percent in London to $2,000 a metric ton at 2:26 p.m. in Singapore.

China’s measures to raise power charges may affect 6 percent, or 1 million tons of smelting capacity in China, according to estimates by Aluminum Corp. of China, or Chalco, the country’s largest producer.

Stockpiles Surge

China is cutting overcapacity as stockpiles of the metal in warehouses monitored by the Shanghai Futures Exchange have jumped 61 percent this year after smelters ramped up output on expectations demand will improve as the global economy recovers.

Higher production costs and weak aluminum prices may force smaller smelters to cut production in the second half, Eric Zhang, an analyst at Shanghai Metals Market, a unit of CBI China Co., said in a report last week.

“Zinc and lead producers will be next,” said Jiang Donglin, research department manager at Shenzhen Zhongjin Lingnan Nonfemet Co., the country’s third-largest zinc maker.

“The bigger ones that have their own mines are still in the black,” Jiang said. “Some of the smaller ones, which have to import concentrate, have already started to operate at a loss and it’s only a matter of time before they cut output.”

--Editors: Richard Dobson, Jake Lloyd-Smith
To contact the reporter for this story: Glenys Sim in Singapore at gsim4@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
http://www.businessweek.com/news/2010-05-21/aluminum-producers-in-china-losing-money-may-reduce-output.html

India: Aluminum fall on higher stocks

AHMEDABAD (Commodity Online): Aluminum May contract has moved down by 0.60% during trading session in MCX due to Dollar strength and higher stocks.

Aluminum opened at Rs 92.85 per Kg and made low of 90.85 while it made high of 93.6. Total volume is around 3588 lots and open interest is around 2280. Today LME stocks is +39075

“Technically, resistance level is at 95” said Hardik Shah, Sr. Commodity Analyst with Commodity Online.

14 days RSI for Aluminum is at 35 and is decreasing continuously on selling pressure.

“Fundamentally, Aluminum is weak. One can make short position at 97 levels for long term.” said Shah.

To get in touch with the Analyst on this report, please mail to tips@commodityonline.com
http://www.commodityonline.com/marketmovers/India-Aluminum-fall-on-higher-stocks-2010-05-20-1125-3-1.html

Vale stays in aluminum with Norsk Hydro deal

Reuters reported that Brazilian miner Vale's purchase of 22% stake in Norsk Hydro will give Vale long term access to aluminum markets even after it exits the aluminum industry as an operator.

Mr Ricardo Carvalho director of Vale Aluminum said that the company would sell its aluminum assets to Norwegian aluminum maker Norsk Hydro in a surprise USD 4.9 billion deal that lets Vale keep exposure to the aluminum value chain from bauxite to aluminum products.

He said that this is a strategic repositioning in which Vale stops being an operator and becomes a major partner of a global aluminum company and makes that company much more competitive in the future.

Mr Carvalho denied the company was reducing aluminum exposure to boost iron ore investments, saying the deal was structured such that the principal compensation to Vale came in the form of Norsk Hydro shares rather than cash. In addition to shares, Vale will receive USD 1.1 billion of cash for assets including the world's largest alumina refinery and one of the world's biggest bauxite mines. The Norwegian company will assume USD 700 million of debt. He said that the deal was unrelated to that dam auction and had been negotiated long before it.

Analyst of HSBC said that we see the sale of aluminum and bauxite assets as strategically positive for Vale. The aluminum division has always had weak performance and the capital freed up can be applied to develop more lucrative assets in iron ore.

Analysts for UBS Investment Research said that this transaction provides with the flexibility to exit the assets in future through a liquid instrument, but also provides a strategic stake in Hydro should Vale turn more constructive on aluminum longer term.
http://www.steelguru.com/news/index/MTQ0NjE0/Vale_stays_in_aluminum_with_Norsk_Hydro_deal.html

Couplings with aluminum hubs have low inertia

Couplings with aluminum hubs have low weight and low inertia making them an excellent choice for servo motor and other precision motion control applications.

Zero-Max CD couplings with aluminum hubs have low weight and low inertia making them an excellent choice for servo motor and other precision motion control applications.

Available in single and double disc pack models, these couplings have high torsional stiffness and zero-backlash.
These aluminum hub CD couplings provide the same torque as the steel hub versions along with a 15 to 20% increase in the couplings rev/min rating for most models.
Both single and double disc pack models combine the best features found in steel disc and elastomeric couplings through the use of a patented open arm disc design made of rugged composite material.
This unique design provides the high misalignment capacity found in many elastomeric couplings but with higher torsional stiffness.
Cmpared to steel disc couplings, CD couplings with aluminum hubs offer superior damping and isolation of shock and vibrating loads, including elimination of fretting corrosion and dramatic reduction of stress fractures at the bolt hole locations.
The CD coupling also provides excellent chemical and moisture resistance in hostile environments that prove difficult or impossible for elastomeric or steel disc couplings.
The aluminum hub CD Single Flex models are available in either clamp style or keyway with set screw style hubs from 1.85in to 6.00in diameters.
They handle speeds from 5,200 to 17,000 rev/min and have torsional stiffness of 1,800 to 41,485 in.lb/deg depending on size.
The aluminum hub CD Double Flex models are available in either clamp style or keyway with set screw style hubs from 1.85in to 6.00in diameters.
They handle speeds from 4,400 to 17,000 rev/min and have torsional stiffness of 850 to 20,196 in.lb/deg depending on size.
CD couplings are also available with custom designed disc packs for virtually any type or style of application.
http://www.manufacturingtalk.com/news/zer/zer107.html

EPA to clean up abandoned aluminum smelter in Vestal

The U.S. Environmental Protection Agency will clean up an abandoned aluminum smelter in Vestal under the federal Superfund program.
Smokey Mountain Smelters on Maryville Pike is one of eight polluted properties nationwide to be nominated for the National Priorities List, the EPA announced Tuesday. The Tennessee Department of Environment and Conservation referred the site to the EPA for inclusion on the list.
According to the EPA, the two-part cleanup will scrub the site of contaminants that are leaching into groundwater and a nearby creek from the aluminum recycling performed from 1979 to 1994 by the now-defunct Rotary Furnace Inc.
"Cleaning up this site is a good thing for the community and Knox County," TDEC spokeswoman Tisha Calabrese-Benton said. "The potential of turning it back to productive use is a positive step."
The first part of the cleanup would remove about 2,700 cubic yards of aluminum dross, a waste product, and demolish the dilapidated main processing building at a cost of up to $3 million, all in federal funds.
In an internal memo, TDEC's remediation director, Andy Binford, outlined the potential danger of inaction: "As this building continues to collapse, if a large amount of water were to contact the unreacted portion of aluminum dross, such as during a severe weather event, a fire and release of ammonia gas could result."
An estimated 2,545 people, including residents of the Montgomery Village housing project, live within a four-mile radius of the site.
The second part of the cleanup would occur after the 27-acre site is added to the National Priority List and would address 75,000 cubic yards of salt cake left over from agricultural chemical production from 1922 to 1979.
According to TDEC, a feasibility study would determine the scope and cost of the work. EPA would pay 90 percent of the second phase, with the state paying the remainder.
The Tennessee Clean Water Network, an environmental advocacy group, has studied the site and pressed state officials to clean it up for years. Renee Hoyos, the group's executive director, said Tuesday's announcement augurs well for an eventual cleanup.
"That's excellent," she said. "That site was leaching the periodic table of elements into that creek."
According to the EPA, the contamination from the aluminum recycling includes aluminum nitride, sodium and potassium chlorides, PCBs and heavy metals like arsenic. The agency reported that arsenic in excess of federal drinking water standards is in the groundwater.
http://www.knoxnews.com/news/2010/mar/03/epa-to-clean-up-vestal-site/