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Aluminium Scrap “A Replenishing Resource”

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by - 9/30/2015 3532 Views

Sustenance through recycling aluminium

Today we often think of aluminum as a metal available in plentiful & cheaply, but 130 years ago aluminum was considered very rare and expensive. According to the book “Chemical Principles,” refining aluminum from bauxite was so costly in the 19th century that the Washington Monument was given an aluminum tip to symbolize its value.

For over hundred years now, the production of aluminum production has been an ongoing process and is continuing strong. One of the key factors in the success story of aluminum is its exclusive character of recyclability. In fact, recycling has proven so valuable—both economically and ecologically—that recovery and recycling has become its own industry, and a highly successful one.

More than one billion tonnes of aluminium has been produced since 1886. Statistics say that approximately, three quarters of this metal is still in productive use, a resource that can be considered a material and energy bank for humankind today and for the future. Around 35% is found in buildings, 30% in electrical cables and machinery & 30% in transport applications last but not the least 1% in packaging products. Aluminium is almost infinitely recyclable with no loss of material qualities. Recycling aluminium requires up to 95 percent less energy than producing aluminium from bauxite (source: http://www.world-aluminium.org/publications/  )

According to Mr. Prakash  Radhakrishna Maladkar,  a mechanical engineer and presently the Managing Director of AFECO HEATING SYSTEMS and an international Aluminium Chip Processing Plant consultant, the growth of the market for recycled aluminum is due in large measure to economics. He voices very strongly that, Aluminium Recycling is cheaper, faster, and more energy efficient & it achieves higher recovery rate of aluminum than ever before. In addition, to achieve a given output of ingot, recycled aluminum requires only about 10 percent of the capital equipment compared with primary aluminum.

In my quest to see what the future holds for alumimium scrap in international markets, I have to say that, in view of growing end-use demand and a lack of sufficient domestic primary aluminium production in Europe, there is a huge stake in maximising the collection of all available aluminium, and developing the most resource-efficient scrap treatments and melting processes.

The importance of efficient aluminium recycling will even further increase in the future because of rising energy constraints in this region of the world and recycling aluminium saves up to 95% of the energy required for primary production.

Analysts of aluminium scrap market, foresee a strong demand in  the growth, especially for auto-sheet. With China’s growth slowing and with Europe trying to fight deflation, there are high expectations for more stimulus measures, which seem likely. In addition, lower oil prices should provide a worldwide boost to household and business spending, which should help to counter some of the other negative factors affecting growth such as tight credit in China. We still expect relatively strong growth overall while aluminium gains market share from copper and galvanised steel. (Source: http://www.sucdenfinancial.com/media/344101/sucden_financial_quarterly_metals_report_january_2015.pdf )

The overall trend portrays that aluminium prices rallied to a high of $2,119 per ton early in September from a low of $1,671.25 in February before dropping back to $1,778, thereby retracing 76 percent of the gains. Prices are now around the upper levels of the former sideways range that formed the 2013-2014 foundation.

Finally to conclude, the writing on the wall points to the fact that aluminium prices have reversed much of the gains of the second and third quarters last year that were prompted by the delay to the new LME load-out rates, which in turn saw LME warehouse queues grow again. High ‘all-in’ prices and, more recently, weaker energy prices have encouraged producers to step up output – the fact this has coincided with deterioration in the economic outlook for the global economy US has dampened sentiment, which is leading to the current price correction. Since oil prices may well remain low for a few quarters and the new LME load-out rates could increase availability, I would say that prices would remain range bound.

Category : Aluminium

Tags : aluminium scrap price, aluminium recycling, aluminium scrap, aluminium scrap buyers, aluminum scrap price, scrap aluminum prices


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About Georgy Abraham

As the bright morning of 28th May dawned in the year 1972, in the fulfillment of time according to the plan & will of Almighty Godbrought me forth into this world and I was brought up & educated in Orissa. My parents provided me with the best of education in an English medium school with high standa .... more info

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