ALFED Monthly Board Report - Jan 2024

Monthly Report January 2024

Contents Accounts Member Updates/News Trade Committee Update 2024 Outlook for the UK Aluminium Industry Social Media Update Website Update Figures

External Communications

Aluminium Federation Ltd Management Accounts Profit & Loss to 31 October 2023

Trading Events Income Events Expenses

Budget 2022

Budget to 31 Oct 23

Actual to 31 Oct 23 Variance

Projections to 31-Dec-23 Variance

123,000 (138,000) (15,000)

33,000 (48,000) (15,000)

49,147 (90,945) (41,798)

16,147 (42,945) (26,798)

House of Lords Lunch income House of Lords Lunch expenses

5,000 (7,000) (2,000)

5,000 (7,000) (2,000)

2,757 (4,933) (2,176)

(2,243) 2,067 (176)

2,757 (4,933) (2,176)

(2,243) 2,067 (176)

Technical course income Technical course expenses

16,000 (2,000) 14,000

13,333 (1,667) 11,667

9,680 (1,173) 8,507

(3,653) 494 (3,160)

11,921 (1,173) 10,748

(4,079) 827 (3,252)

Management course income Management course expenses

10,000 (7,500) 2,500

8,333 (6,250) 2,083

(1,329) (1,329)

(8,333) 4,921 (3,412)

- (10,000) (1,196) 6,304 (1,196) (3,696)

-

-

15,883 (9,546) 6,337

15,883 (9,546) 6,337

15,883 (9,546) 6,337

15,883 (9,546) 6,337

Magazine Income Magazine expenses

9,500 (11,000) (1,500)

7,917 (9,167) (1,250)

2,458 (16,283) (13,825)

(5,459) (7,116) (12,575)

6,053 (16,283) (10,230)

(3,447) (5,283) (8,730)

ASA education fund income ASA education fund expenses

18,000 (18,000) -

15,000 (15,000) -

6,000 (10,445) (4,445)

(9,000) 4,555 (4,445)

18,000 (10,445) 7,555

7,555 7,555

500 (155) 345

417 (129) 288

100 (13) 87

(317) 116 (201)

100 (43) 57

(400) 112 (288)

(1,655)

(4,213)

(48,642)

(44,430)

(25,664) (24,009)

409,256 40,409 27,190 25,000 12,356 3,145 5,000 1,500

341,047 33,674 22,658 20,833 10,297 2,621 4,167 1,250

340,870 38,383 22,659 22,949 9,611 2,158 720 1,719

(177) 4,709 1 2,116 (686) (463) (3,447) 469

409,043 46,471 27,190 29,500 11,533 2,590 1,000 2,300

(213) 6,062 4,500 (823) (555) (4,000) 800

523,856

436,547

439,069

2,522

529,626

5,770

Erasmus grant income Erasmus expenses

Book sales Movement

Income Subscriptions / Membership Sector group income Secretarial New membership CCL Admin Fee (Energy cluster) CCL EA fees recharged Sundry income/consultancy Bank int on deposits

167,686 44,686 (204,445) (66,445) (36,759) (21,759)

Expenditure Staff costs Travel & meeting attendence Office Overheads Climate change Lobbying, promotional & education Other events Storage, subscriptions & insurance Professional & accountancy fees Exhibitions CRU Report Strategic planning consultancy Miscellaneous Bank charges Exchange gains/losses Bad debts Dilapidations Depreciation Loss on disposal of assets

311,703 27,000 48,400 3,145 17,500 3,000 16,950 42,142 15,000 4,000 1,200 700 10,000 840 6,000 -

259,753 22,500 40,333 2,621 14,583 2,500 14,125 35,118 12,500 3,333 1,000 583 8,333 700 5,000 -

248,825 28,742 45,248 2,621 8,817 (1,720) 15,876 59,842 18,992 7,000 5,460 5,111 515 300 6,865 630 1,832 1,882

(10,928) 6,242 4,915 0 (5,766) (4,220) 1,751 24,724 6,492 7,000 5,460 1,778 (485) (283) (1,468) (70) (3,168) 1,882

300,318 36,000 55,288 2,590 9,670 3,000 19,235 66,759 18,992 7,000 7,560 6,200 750 700 8,238 990 2,150 1,882

(11,385) 9,000 6,888 (555) (7,830) 2,285 24,617 3,992 7,000 7,560 2,200 (450) (1,762) 150 (3,850) 1,882

507,580

422,983

456,838

33,855

547,322

39,742

surplus/(deficit)

14,621

9,351

(66,411)

(75,762)

(43,360) (57,981)

Exceptional Items RBS pension costs

5,640

4,700

4,700

-

surplus/(deficit)

8,981

4,651

(71,111)

(75,762)

5,640

-

(49,000) (57,981)

Please note, these figures have been repeated from the last report as we are currently waiting for the final end-of-year figures

Date: 05/02/2024 Time: 15:34:05

(ALFED) Aluminium Federation Ltd Aged Debtors Analysis (Summary)

Report Date: Include future transactions: Exclude later payments:

05/02/2024 No No

Page:

Customer From: Customer To:

** NOTE: All report values are shown in Base Currency, unless otherwise indicated ** A/C

Name

Period 1

Period 2

Period 3

Older

ALC15 ALU02 AMA02 ARCON01 CARB01 EUR07 JONAS01 MEC01 MET21 PRI02 QUA03 SAP05 SHE02 TAN01 UNI04

Aluxide Ltd Aluminium Shapes Ltd Amari Metals Ltd Arconic UK Carbonchain.IO Ltd European Metal Recycling Jonas Metals Software Ltd Mechatherm International Metsource Ltd Primetals Technologies Ltd Qualicoat UK & Ireland Hydro Extrusion UK Ltd Sherwood Stainless and Tandom Metallurgical Co Universal Collaboration *

600.00 7,194.00 2,160.00 4,314.00 0.00 0.00 2,100.00 9,598.80 5,986.80 2,394.00 600.00 222.00 4,788.00 7,188.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,584.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 000

0.00 0.00 0.00 0.00 158.82 -237.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1647.53

47,145.60

1,584.00

0.00

1,568.75

Totals:

*In process of being taken to court

Please note: Due to all of the current invoicing for membership, the summary shows aged debt from Period 1 onwards and not current

1

Member Updates/News All member updates including press releases submitted by members and news are shared regularly via the ALFED website and in the weekly ‘Member Update’ email that is sent to all members.

Updates and news shared throughout January include: •

Member news: Tyrolit Introduce New and Improved Flap Discs https://alfed.org.uk/alfed-member-news-tyrolit-introduce-new-and-improved-flapdiscs/

•

CBAM Report Checklist https://alfed.org.uk/cbam-report-checklist/

•

Govt Update: Third Trade Specialised Committee on Customs Cooperation and Rules of Origin Minutes https://alfed.org.uk/third-trade-specialised-committee-on-customs-cooperation-andrules-of-origin-minutes/

•

Member News: Kloeckner Metals UK Unveils the Largest Metal Stockholding and Processing Site in Scotland https://alfed.org.uk/member-news-kloeckner-metals-uk-unveils-the-largest-metalstockholding-and-processing-site-in-scotland/

•

ALFED to Exhibit at UK Metals Expo 2024 https://alfed.org.uk/alfed-to-exhibit-at-uk-metals-expo-2024/

•

ALFED Report: The EU Carbon Border Adjustment Mechanism and what it means for UK Aluminium https://alfed.org.uk/the-eu-carbon-border-adjustment-mechanism-and-what-itmeans-for-uk-aluminium/

•

BOAL Extrusion UK Invites ALFED to Breakfast Event to Launch their New £1.4 million Billet Oven https://alfed.org.uk/boal-extrusion-uk-invites-alfed-to-breakfast-event-to-launchtheir-new-1-4-million-billet-oven/

First Trade Committee Meeting Held The inaugural Trade Committee meeting was held on Thursday 18th January, with 22 attendees.

The aim of the meeting was to develop a collective trade committee that can understand and develop policy to influence stakeholders including government departments for the benefit of the UK Aluminium sector.

An outcome from this meeting was the election of a Chair (Andy Doran) and Vice Chair (Ewelina Pieckowska). The updated Terms of Reference have been circulated to the Chair and Vice Chair for comments.

It was decided a meeting would be held monthly.

The date of the next Trade Committee meeting is yet to be agreed and announced.

2024 Outlook for the UK Aluminium Industry The Aluminium Federation Economic Outlook Last year, the UK aluminium industry was characterised by low inventories, prolonged and extensive slumps in demand, and sanctions still hanging over Russian metal. There is, however, an expected economic upshift by the end of 2024, and with new EU regulations adding taxes to high carbon imports from 2026, the aluminium industry can expect a year of transitional change, with renewed focus on supply chains and sustainability.

In 2023, the weakened economic climate was exacerbated by both an energy crisis linked to global conflict, and supply chain disruptions that have yet to fully recover from the pandemic.

Supply chain issues have led to historically low stock levels of aluminium and despite a spike at the end of 2023, global consumption has remained relatively flat. This weakness in European aluminium imports has however been counterbalanced by strong demand from China – a market which is now the key driver of global aluminium trade. With the booming Chinese electric vehicle and solar panel industries, demand from China doubled between 2022 and 2023 and absorbed the primary surpluses left by demand slumps in Europe, making a significant contribution to the market.

While industry-wide global export prices have fallen considerably over the last 12 months, this year economic slacks are expected to open up, strengthened in part by a resilient labour market, a fall in energy prices and improvements in household real income growth. While Aluminium is set to remain in surplus with overhanging low inventories through most of 2024, it will move into a more balanced market towards the end of the year, with demand beginning to make a meaningful recovery by 2025.

Major regulatory changes in Europe The EU’s new carbon border adjustment mechanism (CBAM) is revolutionising the way that supply chains operate across all industries. While producers in the EU have historically received free allowances on the European Emissions Trading Scheme (ETS), these are now being phased out to limit “carbon leakage” and replaced with a global system to level the playing field on carbon prices.

Thousands of the most polluting EU businesses must comply, with aluminium producers now liable to report on both direct and indirect embedded emissions, and from 2026 paying a levy on direct emissions based on European carbon pricing (phasing in progressively from a 2.5% cost in 2026 to 100% in 2034). With 30,000 tonnes of aluminium imported into the EU every day, CBAM will have a significant impact on the UK aluminium industry.

The UK government also recently announced its own version of CBAM, which adds a carbon import tax to products and materials entering the UK market. Presently details are scarce,

but there is expected to be a transitional period where reporting requirements and charges are introduced through a similarly gradual approach.

During the EU CBAM transitional period and in preparation for its UK counterpart, aluminium importers should begin collecting and collating both in-house data and on supplier emissions, which can be used to analyse carbon risks, adapt business models, and take actions to change procurement strategies or renegotiate supplier contracts.

2024 Outlook for the UK Aluminium Industry - The Aluminium Federation The case for sustainability in UK aluminium The UN’s Sustainable Development Goals (SDGs) are a collection of seventeen interlinked sustainability objectives which offer a “blueprint” for a healthier planet, society and economy, and the aluminium industry has a major role to play in achieving these goals.

Aluminium contributes significantly to the growing UK sustainable economy, predominantly in renewable energy technology, the transition to electric vehicles, and as the most widely recycled drinks container, but there was six key sustainability issues which the industry must consider to more closely align with the SDGs: climate change, circularity, emissions & waste, water, biodiversity, and people.

Increasing sustainability in these areas will require a strong sector ambition, and industrywide collaboration to set measurable goals and metrics for tracking progress. With cooperation across aluminium supply chains, new technologies and knowledge can be researched, developed and implemented.

As it stands, aluminium is currently at business-as-usual greenhouse gas (GHG) emissions levels and not on track for making reductions as set out in the SDGs, and have in fact risen.

To remedy this, the sector could benefit from targeting three pathways for reducing GHG emissions: i) electricity decarbonisation, i.e. renewable energy procurement; ii) direct emissions, such as those from fleets and production processes; and iii) recycling and resource efficiency, including the use of side streams and water use.

Looking ahead In this fluctuating economic climate, the aluminium industry must consider the long-term implications of global conflict, supply chain disruptions, and evolving regulatory pressures.

Future considerations will need to be centred around identifying new import suppliers, understanding stretch capacity of domestic supply and considering alternatives to primary aluminium, while putting a refreshed focus on greenhouse gas emissions and sustainability.

The aluminium industry will be key to driving industrial change and sustainable progress in the UK economy. With significant strategic value to innovation across a variety of sectors, aluminium is perfectly positioned to capitalise on the rising demand for sustainable materials and unlocking growth in the global green economy. For now, the sector must focus pushing through another difficult year, but on the other side will benefit from an invigorated economic upturn and more balanced markets in 2025 and beyond.

Social Media Update At the Aluminium Federation (ALFED), we use social media as an important way of engaging with our members through not only informing them of the benefits, training and networking opportunities they have access to as part of their membership, but also to give them a platform to shout about the projects and events they are getting involved in. Giving them a unique voice to share their hard work and dedication to creating a positive impact in the UK aluminium industry and the sectors move towards net zero.

The social media platforms we are active on are: - LinkedIn - Twitter - Instagram

Statistics LinkedIn Visitor Highlights • Page Views: 272 • Unique Visitors: 140 Follower Highlights • Total Followers: 7,270 • New followers in the last 30 days: 103 Post Highlights: • Reactions: 317 • Comments: 5 Twitter • Tweet Impressions: 1,829 • Total Followers: 4,367 • New Followers: +3 Instagram: • Total Posts: 102 • Total Followers: 162 • Total people we are following: 105

ALFED Website Performance Stats: Following the launch of the new ALFED website and continued communications efforts, we are now experiencing larger volumes of web traffic.

The website is more user-friendly and the dedicated members area is in constant use.

Nov 23 – Dec 23: • • • •

Active users – 0.6K New users – 0.6K Website views – 1.6K Engagement Rate – 21.41%

Dec 23 – Jan 24: • • • •

Active users – 1.2K New users – 1K Website views – 3.1K Engagement Rate – 58.97%

Jan 24 – Feb 24: • • • •

Active users – 1.9K New users – 1.6K Website views – 4.8K Engagement Rate – 60.43%

External Communications