Advancing aluminium The World Aluminium Conference

CRU conference hall

1. Chris Bayliss, Director of Standards at Aluminium Stewardship Initiative 2. (Left to Right) : Zaid Aljanabi, Head of Aluminium, Consulting, CRU, Virginia Gum Hamisevicz, Vice President, Government Relations and International Programs, The Aluminium Association, Emanuele Manigrassi, Manager EU Public Affairs, European Aluminium Association, Laurent Ruessmann, Partner, FieldFisher 3. Paul Williams, Research manager, Aluminium, CRU Group

The CRU World Aluminium Conference returned after its absence due to COVID- 19. The two day event held its conference in London between the 17th - 18th May 2022. Zahra Awan* was in attendance.

Opening the conference was CRU, Head of Aluminium, Paul Williams, who introduced the Key Note session: ‘Advancing Sustainable Aluminium in Primary, Rolled and Extruded Product Markets’.

Speaking first was Emilio Braghi, Executive Vice President & President, Novelis Europe. Holding high regard to “aluminium cans [which] are winning in the recycling race”, he discussed the key pillars for circularity: Legislation, Market Commitment and Technology. Legislation was a reoccurring theme at the event as Associations, Governments and Policymakers are pressed to provide more to encourage the circularity and recyclability of aluminium. He stated: “Primary aluminium is the way to grow, recycled aluminium is the way to succeed.”

Next on the podium was John Slaven, COO, Alcoa presenting on ‘Reinventing the aluminium industry for a sustainable future’. He highlighted that that as an industry we need to “build foundations from our mind to our metal, to promote and ensure the best sustainable green production.” He went on to discuss the importance of decarbonising smelters, an idea reiterated by Tim Murray, Cardinal Virtues Consulting later in the day. Mr Slaven also discussed the R&D project, Elysis, a joint venture between Alcoa and Rio Tinto. Elysis has already formed a relationship with Apple and Audi with regards to introducing Net-Zero aluminium products.

Following the theme of low-carbon primary aluminium was speaker Paul Warton from Hydro, Executive Vice President Mr Warton has previously spoken to Aluminium International Today on Hydro’s steps towards sustainable aluminium (March/April issue). Covering the automotive industry as well as Hydro’s own ventures to decarbonise the production on primary aluminium, the audience were shown a glimpse into the mindset of the company, with the emphasis on the importance of “upstream to downstream [production is equal] – we need to deliver sustainable solutions.”

Head of Aluminium, CRU, Paul Williams spoke next to give an Aluminium Market Outlook, with a focus on ‘Long Term Growth Clouded by Weakening 2022’. Due to the current conflict in the Ukraine, COVID-19 and inflation, the industry is seeing ‘some demand growth destruction’. Mr Williams concluded that the aluminium industry is set to remain in a deficit for 2022. He also added that the market needs Russian aluminium. However, long term, “aluminium is a winner from the ESG/Green Energy Transition”, the packaging markets are strong and are “likely to cushion any global downturn.”

Following from these discussions, Alba announced its intentions to appoint a consultant to conduct pre-feasibility study for a line 7 smelter. Speaker, Hisham Alkooheji Director of Marketing MEA-Asia (Left), joined via a live link and discussed the renewable fuel alternatives that the company are investigating, such as solar energy.

After a break, the conference continued to discuss the ‘Demand and Sustainability Outlook’. Here, Ball Cooperation European Public Affairs and Sustainability Manager, Claudia Bierth stated that those who can, should “ban landfills”; whilst Nathalie Bacca, Corporate NFM Purchasing Manager Copper and Aluminium Rod,

4. Mark White, Innovation Director, DSW Automotive. 5. CRU panel session 6. Dagný Ósk Ragnarsdóttir, Director of Business Analaysis and Market Development, Landsvirkjun. 7.Nathalie Bacca, Corporate NFM Purchasing Manager Copper and Aluminum Rod, Nexans

Nexons expressed the need for high quality recycled aluminium cables for customers. This later resulted in a debate on the purity of aluminium when scrap is used, which suggested that aluminium containing scrap cannot be a high enough quality for conducting electricity. Rob van Gils CEO and Managing Partner, Hammerer Aluminium Industries joined the panel and added: “There is not enough scrap available” to meet the demands. Further, detailing the complex challenges faced when dealing with scrap aluminium.

Next, a discussion on ‘Trade and GeoPolitical Risks’ was held with speakers from: � Head of Aluminium, Consulting, CRU � Vice President, Government Relations and International Programs, The Aluminium Association � Manager EU Public Affairs, European Aluminium Association � Partner, FieldFisher

A key topic emerging from the presentations was the challenges of the Carbon Border Adjustment Mechanism (CBAM). This proposed solution proved to be a point of disagreement across the panel during the Q&A. Laurent Ruessmann from FieldFisher, stated: “ Like a dear caught in headlights… we [those who proposed CBAM] were fixated on one concept, to fix carbon leakage, but we have not seen it in action,” meaning logistical issues arose, and yet it “is coming to its final destination.” Virginia Gum Hamisevicz The Aluminium Association saw the challenges posed by CBAM as an opportunity to “influence” the review, despite it coming to a close, to get what is best for the industry. This seemed like the only option as currently “it is the aluminium industry who will be hurt the most by the concept,” said Emanuele Manigrassi European Aluminium Association.

To conclude, the final session of the day discussed topics on decarbonisation at a focused level. Tim Murray, CEO, Cardinal Virtues Consulting, discussed the opportunities available to assist with ‘Smelter Decarbonisation’. He suggested that alongside electric furnaces, electric vehicles should be used on the shopfloor. He stated that “doing anything green is not easy, and it’s going to be expensive,” but it is necessary.

Continuing with the conversation on Electric Vehicles were speakers Torbjörn Sternsjo, Senior Advisor to the CEO, Gränges and Professor Mark White, Innovation Director, DSW Automotive. Mr Sternsjo once again highlighted the dilemma when dealing with recycled aluminium, stating: “You need very pure aluminium for EV batteries, meaning you have very limited options when considering scrap – recycled aluminium.” He continued, “We need to improve primary aluminium production to be greener so that we can decarbonise” the EV industry. Mr White elaborated on the many uses and growing uses of aluminium in the EV industry, adding once again that the demand for greener aluminium is only set to increase as consumer demands are growing.

The CRU World Aluminium Conference 2022 will continue into its second day tomorrow, where delegates can expect more discussions on the challenges and solutions regarding the aluminium industry, as well as great opportunities to network with key industry players and specialists.

The event attracted well-known executives and decision-makers from the primary, secondary, extruded, rolled products, end use, trading, and financial sectors, creating an environment conducive to networking. Regularly attracting more than 300 senior decisionmakers, representing 160+ companies from 36 countries, the event is was a great opportunity to network face-to-face or with the click of a button.

The hybrid event went into its second day discussing the topics of: � Sustainability and certification � Global Economic Outlook � Green Stability in a volatile world � Prices and Premium outlook � Raw Material

Starting off the conference, Miles Prosser, Secretary General, International Aluminium Institute (IAI) compared aluminium’s sustainable characteristics to other high demand materials – copper, steel, glass and plastic (polyethylene terephthalate – PET). From IAI fi ndings, “aluminium out preforms glass and plastics in closed loop recycling,” said Mr Prosser. “Today more than 70% of the material used in aluminium cans is recycled into new products – almost double that of glass (34%) and plastic (40%).”

Chriss Bayliss – Aluminium Stewardship Initiative (ASI) commended the industries shift in focus to the sustainability of their products. He said “I am proud o see so many members proud to be certifi ed by the ASI… Now I want to see companies that aren’t up to the standards come forward to work with us to improve their sustainability.” He also called out the importance if #nature and biodiversity” and “human rights” when discussing sustainability.

Speaking next, on the “bleak image” of global economics, Alex Tuckett, Head of Economics, CRU. Warning the audience of the recession risks; heightened by Covid-19 in China, Ukrainian confl ict, Infl ation and Monetary Policy, Mr Tuckett attempts to provide solutions and a few buffers that the economy has against the great threats, such as excess savings that people have built up. Dagný Ósk Ragnarsdóttir, Director of Business Analysis and Market Development, Landsvirkjun added to the list of issues that the industry will face – “the demand for aluminium will increase beyond Iceland’s capacity… it is not easy to expand Iceland’s production and no new smelter is on the horizon.”

The economic struggle was reemphasised by the ninth session, ‘prices and premiums outlook’, the session was discussed by: Aline Carnizelo, Portfolio Manager - Pala, Colin Hamilton, Managing Director, Commodities Research - BMO Capital Markets, Duncan Hobbs, Research Director - Concord Resources Limited, Xiao Fu, Head of Commodity Markets Strategy - BOCI Global Commodities, Nicholas Snowdon, Metals Strategist - Goldman Sachs, and Max Layton, Managing Director, Commodities Research - Citi Global Markets.

The CRU conference illustrated the aluminium industries shift towards committing to sustainable manufacturing. The industry will face hardships as the global economy struggles, but the industry is hopeful for aluminium as the material of the future. �

For more information visit:

https://events.crugroup.com/aluminium/home?utm_medium=Referal&utm_source=cru_homepage&utm_ campaign=banner

Published six times a year in both print and digital, AIT is an English language journal dedicated to the production and processing of aluminium.

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