Latest news with #CenturyAluminum
Reuters
a day ago
- Business
- Reuters
Aluminium producers in the US win from Trump's tariffs
LONDON, June 9 (Reuters) - Century Aluminum, the largest primary aluminium producer in the U.S., and top recycler Matalco will be among the big winners from President Donald Trump's higher tariffs on imports of the metal as domestic prices surge, four industry sources said. However, some sector players are worried that Trump's move from June 4 to hike the tariffs to 50%, from 25%, could push prices so high that demand starts to weaken. Higher revenues for U.S. aluminium producers and recyclers are expected mainly due to the way the market prices the metal key for construction, power and packaging industries. The companies typically charge customers the London Metal Exchange aluminium price plus a physical market premium to cover other costs including freight and taxes. The so-called Midwest premium hit a record 62.5 U.S. cents a lb, or $1,377 a metric ton, on Friday. Since Trump was elected for his second term in November, it has surged nearly 190%. Consultancy Harbor Aluminum said the premium would have to rise to 70 cents a lb, or $1,543 a ton, to fully reflect the 50% tariff. Century (CENX.O), opens new tab, in which London-listed miner Glencore (GLEN.L), opens new tab is the top shareholder with a stake of more than 40%, declined to comment beyond a statement it issued last week, in which it welcomed the 50% tariff. Century produced 690,000 metric tons of aluminium last year. Miner Rio Tinto (RIO.L), opens new tab, ( opens new tab, which owns a 50% stake in Matalco, declined to comment, speaking on behalf of the U.S. company, which produced 528,000 tons of recycled or secondary aluminium last year. U.S. imports of scrap aluminium remain free of tariffs, but aluminium recycling needs primary metal to maintain properties of alloys used to make industrial goods. Alcoa (AA.N), opens new tab, one of the world's largest aluminium producers, said its U.S. smelters would also benefit from the tariffs, and that its active production capacity in the United States totalled 291,000 tons. Alcoa's global aluminium output was 2.215 million tons last year. Constellium, which has a capacity to recycle 360,000 tons of aluminium annually in the United States, said it supported the original 25% tariff because it helped address unfair trading practices by non-market economies. "However, we are concerned that increasing the tariff beyond this level could have unintended consequences - potentially disrupting the aluminum supply chain and impacting demand," it added. Higher aluminium costs are likely to be passed on to consumers, which analysts expect will eventually hit demand. With its local primary aluminium industry in decline for years, the U.S. relies on imports of large amounts of unwrought aluminium and alloys - more than 3.9 million tons last year, according to U.S. government data. The U.S. produced more than four million tons of aluminium last year, most of it recycled material, according U.S. Geological Survey. Industry sources expect U.S. scrap aluminium imports to climb as recycling companies take advantage of high premiums to ramp up production. Already U.S. scrap aluminium imports have started to rise. Data from information provider Trade Data Monitor shows U.S. scrap aluminium imports rose more than 30% to 201,968 tons in the first quarter of this year from the same period in 2024. Traders said the high Midwest premium would allow recyclers to bid more for scrap than buyers outside the United States, as they can sell aluminium locally at a higher price. LME aluminium is trading around $2,500 a ton, while the duty-paid premium in Europe has dropped more than 50% to $170 a ton since January on expectations some global producers will divert primary metal to Europe to avoid U.S. tariffs.
Yahoo
02-06-2025
- Business
- Yahoo
Nucor Leads S&P 500 On Trump's 50% Steel, Aluminum Tariffs
President Trump's Friday announcement that steel and aluminum tariffs will double to 50% on June 4 sent shares of U.S. producers surging early Monday, including Nucor, Cleveland-Cliffs and Century Aluminum. Trump made the announcement at a Friday rally near Pittsburgh, celebrating Nippon Steel's deal to buy U.S. Steel, which he blessed after the Japanese company pledged to build a new mill and double its spending plan. "Nobody's going to get around that," Trump said Friday, in announcing the 50% steel tariff.
Forbes
29-05-2025
- Business
- Forbes
The Accumulating Costs Of Tariffs On The Aerospace And Defense Industry
EVERETT, WA - Boeing employees work on a Boeing 787 Dreamliner on one of the assembly lines February ... More 14, 2011 at the company's factory in Everett, Washington. (Photo by) The whipsaw pronouncements from the White House imposing and then delaying tariffs have sent equity and bond markets on a roller coaster ride. Although presumptions of negotiating advantageous trade deals buoys markets temporarily, the actual effect has been to raise costs through many industries, including aerospace and defense. On March 12 of this year, the Administration imposed 25% tariffs on imports of aluminum and steel from all countries, including Canada, under Section 232 of the Trade Expansion Act of 1962. Whereas a steel tariff of 25% had been in effect since 2018, the announcement raised the tariff on aluminum, which has extensive use in aerospace, from 10%. The move also removed many specific exemptions and included downstream derivative products. Section 232 was imposed under the rationale that imports of steel and aluminum threatened national security by economically undermining domestic producers. Indeed, the US has only two domestic companies (Alcoa, Century Aluminum) with four smelters. The majority of aluminum for aerospace comes from Canada with ten smelters located in Quebec and British Columbia. Although the tariffs may eventually stimulate production from the US suppliers, the production lag means costs will increase in the interim, and prices will likely rise to near the level of the import alternative. WASHINGTON, DC - APRIL 02: U.S. President Donald Trump holds up a chart while speaking during a ... More 'Make America Wealthy Again' trade announcement event in the Rose Garden at the White House on April 2, 2025 in Washington, DC. Touting the event as 'Liberation Day', Trump is expected to announce additional tariffs targeting goods imported to the U.S. (Photo by) These product specific tariffs were followed by the 'Liberation Day' tariffs on April 2. Although these country tariffs were then delayed for ninety days and change day by day, the net effect is that an industry that operates a global supply chain must prepare to pay the tariff in real time or find ways to exempt or pass it along to the next buyer. And then yesterday, the Court of International Trade declared the 'reciprocal tariffs' of Liberation Day to be illegal. The White House is appealing the ruling and is vowing to continue their fight. However, the aluminum tariffs are unaffected by this action and are still in place. In addition to actual added costs, uncertainty has the effect of delaying investment decisions and forward planning. Ever since the election, I have written several articles in warning of the costs that would be imposed on the industry by these trade actions (Nov 27 -How Will Threatened Tariffs Impact the Aerospace and Defense Industry?, Feb 28 - Trump Tariff Impact on Aerospace Could Be Huge and Costly, Mar 30 - The Looming Impact of Aerospace Tariffs, Apr 5 - Can Tariffs Truly Stop Globalization?) Recent findings have confirmed these predictions. Ernst and Young has estimated the costs of the tariffs as between $5 and $8 Billion on the overall commercial and defense industry. These costs are incurred first in the supply chain and may be passed along to the next purchasing level, depending upon the terms and conditions of the supply agreements. It has behooved suppliers to carefully examine their agreements. Often, buried in the boilerplate are exemptions for tariffs, similar to material cost escalator provisions. Although this is a boon to the supplier, it means that the next higher level is now incurring the cost which potentially could daisy chain up to the OEM. The gravity of this situation, not even counting the administrative bandwidth consumed to track, apply and exempt, has been underscored by a recent White Paper published by the Aerospace Industries Association (AIA), on May 1. 'American aerospace is the perfect example of a sector where America is dominant in large part because of balanced, reciprocal trade,' AIA Vice President of International Affairs Dak Hardwick said. 'The little-known Agreement on Trade in Civil Aircraft has unlocked enormous benefits for the American workers, the economy, and our ongoing safety and prosperity." The US aerospace and defense industry generated almost a trillion dollars of sales in 2023, the last year for which AIA has published figures, supporting 2.2 million workers. Their wages are fifty percent above the national average wage. Few American industries have the attractive attributes as aerospace. The Administration should tread carefully in imposing costs of as high as an additional 8% on a domain where the US enjoys global leadership over fierce competitors.
Associated Press
28-05-2025
- Business
- Associated Press
xSuite North America to Host 2025 User Conference in Boston
Showcasing Future-Driven SAP Finance and AI Solutions for Digital Transformation Leaders Boston, MA – May 28, 2025 – xSuite North America is pleased to announce its annual User Conference, taking place on June 17–18, 2025, at the Battery Wharf Hotel in Boston. Tailored for finance and IT decision-makers, this one-and-a-half-day event will spotlight next-generation technologies shaping the future of finance, including artificial intelligence (AI), e-invoicing, SAP Business Technology Platform (SAP BTP) solutions, intelligent archiving, and customer success enablement. Attendees can look forward to expert-led sessions, hands-on insights, and real-world use cases illustrating how xSuite empowers organizations to transform finance operations with intelligent automation and SAP-integrated workflows. Exploring Innovation: AI, Cloud, and Digital Finance Solutions As cloud computing and AI continue to redefine the finance function, xSuite will use this platform to unveil product innovations and outline its strategic roadmap. The conference will feature insights into emerging technology trends and customer-centric enhancements across its solution portfolio. A highlight of the event will be two customer presentations by Altenloh and Century Aluminum, detailing their journey with xSuite for automated invoice processing. The case study will walk attendees through project initiation, key challenges, implemented solutions, and the tangible results achieved. Conference Highlights – Day One: Strategy, Solutions, and Insights 1. AI-Driven Invoice Processing in SAP This session will spotlight xSuite's AI Solutions including Prediction Server, an AI-powered tool that analyzes invoice data to automate decisions across postings and workflows. Leveraging machine learning, it generates smart suggestions for account assignments, cost centers, approval routing, company codes, and more. 2. E-Invoicing Roadmap and Strategy Attendees will gain a comprehensive view of xSuite's strategic roadmap for e-invoicing, with a focus on upcoming features, performance enhancements, and initiatives designed to optimize digital finance operations. 3. End-to-End P2P Solutions for SAP and SAP BTP xSuite will present a holistic approach to purchase-to-pay processes, order management, a supplier portal, and archiving—demonstrating seamless integration with SAP S/4HANA and SAP BTP environments. Networking and Collaboration Opportunities The first day will close with dedicated networking sessions, allowing attendees to connect with peers, exchange ideas, and explore xSuite's role as a strategic partner in digital transformation initiatives. Day Two: Hands-On Training for xSuite Administrators The second day of the conference will feature technical training sessions tailored for on-site administrators of xSuite solutions. These workshops will equip participants with the practical knowledge needed to manage and optimize their xSuite environments effectively. Event Details: xSuite User Conference North America June 17-18, 2025 Battery Wharf Hotel, Boston Waterfront Three Battery Wharf Boston, MA 02109, US June17: 10:00 AM – 04:00 PM June 18: 10:00 AM – 12:30 PM More information and registration: About xSuite Group xSuite is a software manufacturer of applications for document-based processes and provides standardized, digital solutions worldwide that enable simple, secure, and fast work. We focus mainly on the automation of important work processes in conjunction with end-to-end document management. Our core competence lies in accounts payable (AP) automation in SAP (including e-invoicing), for leading companies worldwide, as well as for public clients. This is supplemented by applications for purchasing and order processes as well as archiving – all delivered from a single source, including both software components and services. xSuite solutions operate in the cloud or in hybrid scenarios. We take pride in the high-quality solutions we offer, as evidenced by the regular certifications we receive for our SAP solutions and deployment environments.' With over 300,000 users benefitting from our solutions, xSuite processes more than 80 million documents per year in over 60 countries. Founded in 1994 and headquartered in Ahrensburg, Germany, xSuite has around 300 staff across nine locations worldwide – in Europe, Asia, and the United States. Our company has an established information security management system that is certified in accordance with ISO 27001:2022. Press Contact Headquarters: Barbara Wirtz xSuite Group GmbH Tel. +49 4102 883836 [email protected] Attachment
Reuters
22-05-2025
- Business
- Reuters
US aluminium smelters vie with Big Tech for scarce power
LONDON, May 22 (Reuters) - It's forty-five years since anyone built a primary aluminium smelter in the United States. When Alumax fired up the Mt Holly plant in South Carolina in 1980, the country's tally of smelters rose to 33 with combined annual capacity of almost five million metric tons of aluminium. Today that number has shrunk to six. Two are fully curtailed. Two, including Mt Holly, are running below capacity. Annual production has shrunk to 700,000 tons. Emirates Global Aluminium hopes to reverse the tide with a new plant, opens new tab in Oklahoma. It joins Century Aluminum (CENX.O), opens new tab, which was awarded federal funding, opens new tab by the Joe Biden administration for a new "green" low-carbon smelter somewhere in the Ohio/Mississippi River Basins. Both projects face the same dilemma. High power prices killed off most of the country's smelters and a lack of competitively priced power has deterred anyone from building one since the last century. It doesn't help that any smelter project must compete for electricity with tech companies willing to pay almost anything for their power-hungry data centres. Aluminium compounds have been around since ancient times, used by the Egyptians as a dye-fixer and the Persians for pottery. But it wasn't until the early 19th century that anyone worked out how to refine bauxite into metal and even then it remained something of an expensive curiosity. Global production was just two tons in 1869 and aluminium was more valuable, opens new tab than gold. The solution, discovered independently by Charles Martin Hall in the United States and Paul Héroult in France, was to use electrolysis on an intermediate product called alumina. The Hall-Héroult process, opens new tab is still the dominant technology in producing a metal that is now ubiquitous in buildings, vehicles and consumer packaging. And it needs a lot of uninterrupted power. It takes 14,821 kilowatt-hours of electricity to make a ton of aluminium, according to the U.S. Aluminum Association. A modern-size smelter with annual capacity of 750,000 tons needs more power than a city the size of Boston. That's a big challenge for any primary aluminium producer in the United States given the Energy Information Administration estimates that the country will be facing an energy deficit of 31 million megawatt-hours by 2030 and 48 million by 2035. The power is available right now to build a new U.S. aluminium smelter, according to Matt Aboud, Senior Vice President of Strategy & Business Development at Century Aluminum. The problem, he explained at last week's CRU Aluminium Conference in London, is that it isn't available at a fixed long-term price, which is what a smelter needs to lock in its profitability and pay back construction costs that will run into the billions of dollars. The Aluminum Association estimates that a new U.S. smelter would need a minimum 20-year power contract at a price of not more than $40 per MWh to be viable at current aluminium prices. Any smelter project is in a race with Big Tech, which is on the same hunt for energy to power its next-generation artificial intelligence data centres. And tech companies "have no limit on what they are prepared to pay for dependable 24/7 electricity", according to the Aluminum Association's just-released report, opens new tab on rebuilding U.S. supply chain resilience. The Association estimates Microsoft (MSFT.O), opens new tab conceded $115 per MWh in its deal with Constellation Energy (CEG.O), opens new tab to restart the Three Mile Island nuclear plant in Pennsylvania. Even reactivating moth-balled aluminium lines will be challenging given the 2023 price of power averaged $73.42 per MWh in the four U.S. states hosting smelters with idle capacity, it warned. EGA hasn't yet signed a power deal for its proposed 600,000-ton-per-year smelter in Oklahoma. Final go-ahead is contingent on an agreed "power solution framework based on a special rate offer from the Public Service Company of Oklahoma," according to the Memorandum of Understanding, opens new tab signed by state governor Kevin Stitt. Oklahoma has the advantage of producing almost three times more energy than it consumes, according to the EIA, opens new tab. Around half of the state's electricity generation was sourced from natural gas in 2023, with wind power accounting for another 42%. Indeed, Oklahoma is the third largest wind power state after Texas and Iowa. Harnessing intermittent wind power to run an aluminium smelter, however, would take a massive amount of grid storage capacity, meaning there would likely have to be some gas in the energy mix for any new smelter. That's better than coal but not ideal in an industry which is collectively trying to lower its carbon footprint to produce "green" aluminium. Even assuming EGA can get a viable long-term power deal, the $4 billion project will only pour its first hot metal some time near the end of the decade. By which time, 14 new re-melt facilities will have started up, lifting U.S. demand for recyclable scrap aluminium to 6.5 million tons, according to the Aluminum Association's projections. Recycling requires much less power, typically around 5% of that required to produce virgin metal, and comes at a much lower capital cost. The main constraint on U.S. secondary production growth is a shortage of "scrap". The country has an astonishingly low beverage can recycling rate of just 43% and throws away the equivalent of 800,000 tons of aluminium every year. It also exports huge amounts of end-of-life aluminium scrap. Exports rose by 17% year-on-year to 2.4 million tons in 2024, much of it destined for China, which is increasingly hungry for recyclable raw material. Capturing more recyclable material at home and sending less of it abroad would be a complementary strategy for reducing import dependency of a metal classified as critical by every U.S. government agency. It's also likely to be faster and cheaper than waiting to see if either EGA or Century can win the battle with Big Tech for enough power to build a new primary smelter. The opinions expressed here are those of the author, a columnist for Reuters.
