Eastern Metal Supply Acquisition Expands US Aluminum Distribution Network

Eastern Metal Supply

Eastern Metal Supply acquisition of American Metals Supply strengthens the company’s US aluminum products distribution footprint across the Midwest and southern states. The deal adds 10 locations across seven states to EMS’ service network.

Eastern Metal Supply acquisition gives the Lake Worth, Florida-based distributor broader geographic reach and a wider product offering. Financial terms were not disclosed.

Eastern Metal Supply acquisition is significant because aluminum distribution remains a key link between mills, extruders, fabricators and end users. Regional service networks help customers secure material, manage lead times and access value-added products.

American Metals Supply, based in Tampa, Florida, supplies aluminum products to patio and industrial markets. It also offers a full line of heating, ventilation and air conditioning products.

Geographic Reach Becomes a Distribution Advantage

The acquisition expands EMS’ presence in important US regional markets. More locations can improve customer service, shorten delivery routes and increase inventory availability.

Distribution scale matters in aluminum because buyers often need flexible supply across standard shapes, extrusions, sheet, coil, accessories and fabricated products. A broader branch network can help distributors respond faster to local demand.

The Midwest and southern US remain important markets for construction, industrial manufacturing, patio products, HVAC systems and aluminum fabrication. EMS’ expanded footprint should give the company stronger access to these customer bases.

The deal also reflects consolidation in metals distribution. Larger distributors can use wider logistics networks, purchasing scale and broader product lines to compete more effectively.

Aluminum Service Centers Follow End-Market Demand

AMS brings exposure to patio and industrial end markets, along with HVAC products. These sectors support steady aluminum consumption through residential improvement, commercial building, mechanical systems and light industrial applications.

For EMS, the acquisition improves its ability to serve customers that need both aluminum products and adjacent building-system materials. This can create cross-selling opportunities across construction and industrial accounts.

The deal also shows that aluminum distribution strategy is moving closer to end-use specialization. Customers increasingly value suppliers that understand their applications, not only basic metal inventory.

As aluminum demand becomes more segmented, distributors with stronger regional coverage and market-specific product portfolios will be better positioned. EMS’ acquisition of AMS fits that direction.

The Metalnomist Commentary

This deal is not about primary aluminum capacity; it is about control over downstream access. In a market shaped by logistics, tariffs and regional demand, distribution networks are becoming a strategic layer of the aluminum supply chain.

Tantalum Prices Surge as AI Capacitor Demand Meets Tight African Supply

Ta (Tantalum)

Tantalum prices have surged across concentrates, metal, and scrap as capacitor demand rises and supply disruption tightens the upstream market. The rally reflects a rare collision between stronger electronics consumption, AI data centre investment, and instability in central African raw material flows.

The price rise began before the latest disruption. However, the February landslide at the Rubaya mine in rebel-held eastern Democratic Republic of Congo intensified the market shock. Tantalum concentrate prices jumped sharply, and the pressure quickly moved into tantalum metal and scrap markets in Europe and the United States.

The supply impact has been especially important because much of the material linked to eastern DRC moves through Rwanda before entering international trade. Any disruption around Rubaya therefore affects more than one mining district. It also exposes how dependent the tantalum supply chain remains on politically fragile and difficult-to-monitor sources.

AI Data Centres Lift Tantalum Capacitor Demand

AI data centres have become a major new demand driver for tantalum capacitors. These components help regulate electricity flow on circuit boards and remain critical in high-performance electronics. As AI servers expand, demand for tantalum and tantalum-polymer capacitors is rising alongside advanced chips, power systems, and server hardware.

This demand is not theoretical. Boards used for Nvidia H100 cards can contain multiple tantalum and tantalum-polymer capacitors, making AI infrastructure a direct consumption channel for tantalum products. As Alphabet, Microsoft, Meta, and Amazon raise capital spending for AI infrastructure, smelters and traders expect stronger orders for next-generation capacitor materials.

The capacitor industry is already responding to cost pressure and higher demand. Manufacturers raised prices across several product ranges in 2025, including tantalum-polymer capacitors and multilayer ceramic capacitors. Higher tantalum powder costs contributed to the increases, but AI-related consumption has become an equally important factor.

Tight Supply Pushes Tantalum Metal and Scrap Higher

Tantalum prices are rising because the market faces pressure at both ends of the value chain. Upstream concentrate availability has tightened, while downstream buyers in capacitors and alloys continue to compete for material. This has lifted prices for concentrates, refined metal, and scrap at the same time.

The alloy sector has added another layer of demand stability. Even as capacitor demand accelerates, industrial users of tantalum metal continue to require reliable supply for high-performance applications. As a result, scrap has become more valuable because it offers an alternative source of tantalum units when mined supply becomes uncertain.

The current rally also echoes earlier technology investment cycles. The Dotcom boom drove strong demand for tantalum capacitors and pushed tantalite prices to historic highs. Today, AI infrastructure may be creating a similar demand shock, but with a more complex supply chain and tighter scrutiny around conflict-linked minerals.

The Metalnomist Commentary

Tantalum is becoming a hidden beneficiary of the AI infrastructure boom. The market risk is that capacitor demand can scale faster than responsible mining, refining, and recycling channels can respond.

Hydro Qatalum Force Majeure Raises New Aluminum Supply Risk

Qatalum

Hydro Qatalum force majeure has created fresh uncertainty around aluminum supply from the Qatar-based smelter after Hydro declared contractual disruption linked to a commercial dispute with the joint venture.

Hydro Qatalum force majeure affects supply contracts tied to products including aluminum billet and primary foundry alloys. Hydro acts as sales agent for Qatalum output under an existing commercial agreement.

Hydro Qatalum force majeure is the second disruption involving the smelter in recent months. Qatalum previously entered a controlled shutdown after gas supply problems linked to the Middle East conflict.

The plant avoided a full closure after QatarEnergy restored enough gas supply to support reduced operations. Qatalum has reportedly been running at around 60% of production capacity since then.

Commercial Dispute Adds to Existing Production Constraints

The latest force majeure differs from the earlier disruption because Hydro has linked it to a commercial dispute rather than physical gas shortages.

Hydro has not disclosed details of the dispute or released the force majeure notice. Qatalum and Qatar Aluminum Manufacturing have also not provided public clarification.

That leaves customers with uncertainty over both the duration and scale of the supply impact.

Qatalum's reduced operating rate already limits available metal. A commercial dispute affecting sales arrangements could further complicate deliveries even if physical production continues.

Billet customers may be particularly exposed because these products feed extrusion plants serving construction, transport and industrial applications.

Primary foundry alloys also support automotive and casting markets, making continuity important for manufacturers dependent on specific alloy specifications and approved suppliers.

Middle East Aluminum Supply Remains Vulnerable

Qatalum's recent operating history shows how energy and geopolitical risks can quickly affect primary aluminum supply.

Aluminum smelting requires large volumes of continuous electricity and stable energy inputs. Gas supply disruptions can therefore force rapid production cuts even at modern smelters.

The earlier Qatalum force majeure reflected this vulnerability. The latest commercial dispute adds another layer of uncertainty to an already constrained operating environment.

For customers, the risk is not only lower output but reduced visibility over shipment schedules and replacement metal.

Alternative billet and foundry alloy supply may need to come from other Middle Eastern, European or Asian producers, potentially increasing regional premiums and logistics costs.

The situation also reinforces the strategic importance of diversified supply. Buyers dependent on single smelters or sales channels remain exposed even when underlying global aluminum availability appears sufficient.

The Metalnomist Commentary

Qatalum's second force majeure in a short period shows how operational and commercial risks can compound in primary aluminum supply. For buyers, diversification is becoming increasingly important as energy security and contract stability both affect physical availability.

Greenland Resources to supply Mo to GMH Group under long-term MOU

Greenland Resources

Greenland Resources to supply Mo to GMH Group as Europe tightens its strategy on critical alloying inputs. Greenland Resources to supply Mo to GMH Group through a long-term memorandum of understanding. Therefore, the deal adds another European steel anchor to Malmbjerg’s offtake portfolio.

Greenland Resources to supply Mo to GMH Group in multiple product forms. The company plans to deliver ferro-molybdenum, molybdenum oxide, and briquettes. Meanwhile, a refinery in Belgium will process material produced from Malmbjerg ore, supporting European value-added conversion.

Greenland Resources to supply Mo to GMH Group from its Malmbjerg project in eastern Greenland. Malmbjerg holds a 30-year exploitation permit granted in June 2025. As a result, the project can frame multi-decade supply discussions even before full commercial ramp-up.

Why GMH’s molybdenum sourcing matters for specialty steel

GMH Group operates in steel markets where molybdenum directly upgrades performance. Molybdenum improves high-temperature strength and corrosion resistance in critical grades. Therefore, stable Mo supply can protect margins in engineering steel, energy, and industrial tooling demand cycles.

European steelmakers also face growing procurement risk for alloying elements. Logistics, permitting delays, and geopolitical friction can disrupt minor metal flows. However, long-term Mo agreements can shorten sourcing lead times and stabilise quality specifications.

Malmbjerg builds a European offtake network around Mo products

The GMH MOU follows earlier offtake agreements Greenland Resources signed with European industrial buyers. Those deals include Hempel, Cogne, and Outokumpu. Meanwhile, adding another German buyer increases the project’s commercial credibility with financiers and export credit agencies.

Product flexibility also signals a practical approach to customer needs. Some buyers prefer oxide for downstream conversion, while others prefer ferro-alloy units. Therefore, offering multiple forms can widen the reachable customer base and reduce single-product exposure.

The Metalnomist Commentary

This MOU strengthens Malmbjerg’s positioning as a Europe-oriented molybdenum supply option. However, project execution and refining readiness will decide whether the contracts translate into real volumes. The winners will be those who lock in specifications early and qualify supply chains fast.

Henan Zhongfu Egyptian Aluminium Complex Plans Signal China’s Downstream Expansion

Henan Zhongfu Industrial

Henan Zhongfu Egyptian aluminium complex plans could create a major new downstream manufacturing base in the Suez Canal Economic Zone. The Chinese aluminium producer is planning to establish a $2bn facility in Egypt, strengthening its access to Middle Eastern, African and European markets.

The planned Henan Zhongfu Egyptian aluminium complex was discussed during a meeting between Egyptian prime minister Moustafa Madbouly and a delegation from the Chinese company. Egypt said it is ready to provide full support for the project as part of its wider push to advance industrial development.

The Henan Zhongfu Egyptian aluminium complex would cover 1mn m² in the East Port Said area of the Suez Canal Economic Zone. The project is expected to create about 3,000 direct jobs and become the first facility of its kind in the area.

Egypt Targets Higher-Value Aluminium Manufacturing

The project fits Egypt’s strategy to localise higher-value aluminium industries and reduce production gaps. Rather than focusing only on basic metal supply, the planned facility is expected to support downstream products for packaging, automotive and construction applications.

These markets are important because they consume rolled aluminium and other fabricated products with higher added value than primary metal. Packaging requires aluminium sheet and foil. Automotive applications increasingly use aluminium for lightweighting. Construction uses aluminium in profiles, panels, façades and structural systems.

The Suez Canal Economic Zone gives the project a strong logistical position. East Port Said can support exports into Europe, the Middle East and Africa, while also serving Egypt’s domestic industrial market.

For Egypt, the investment could strengthen manufacturing depth and attract more industrial supply-chain activity around aluminium products. It also supports the government’s goal of expanding value-added manufacturing rather than relying only on imported finished goods.

Chinese Aluminium Producers Seek Global Market Access

Henan Zhongfu already exports aluminium products to more than 45 countries. The Egyptian project could help the company move closer to customers and diversify production outside China.

This matters because aluminium trade is increasingly shaped by tariffs, logistics costs, regional content rules and industrial policy. Overseas processing bases can help Chinese producers reduce market-access risk while supporting global customer supply.

The project also reflects a wider trend among Chinese metals companies. Producers are moving from export-only models toward international manufacturing platforms, especially in regions with logistics advantages and policy support.

No detailed capacity figures or construction timeline have been disclosed. However, the scale of the proposed investment suggests that the facility could become a significant downstream aluminium platform if approvals, financing and execution proceed smoothly.

For aluminium markets, the project’s main significance lies in downstream capacity rather than primary supply. It could strengthen competition in rolled and fabricated aluminium products across packaging, automotive and construction sectors.

The Metalnomist Commentary

The Henan Zhongfu project shows how aluminium competitiveness is shifting toward regional manufacturing platforms. Egypt’s location gives the project strategic value, while China’s downstream know-how could help build a larger aluminium products hub around the Suez Canal.

Bonnell Aluminum Shipments Fall as Solar, Auto and Construction Demand Weakens

Bonnell

Bonnell Aluminum shipments fell in the first quarter as weaker demand from solar panel manufacturers, automotive customers and nonresidential building markets weighed on the US extruder. Total shipments declined by 7.3% year on year to 35.2mn lb.

Bonnell Aluminum shipments showed the split in US extrusion demand. Traditional volume markets weakened, while T-slotted extrusions used in data centers, automation and manufacturing increased sharply.

Bonnell Aluminum shipments also reflected a more difficult order environment. New orders fell by 20% to 2.8mn lb/week, while open orders dropped by 24% to 19mn lb at the end of the quarter.

The company said open orders are now below levels normally associated with stable demand. That signals weaker near-term visibility for US extruders despite revenue growth from higher metal cost pass-through.

Solar, Automotive and Construction Weakness Pressure Volumes

Nonresidential building and construction shipments fell by 6% as higher costs and economic uncertainty weighed on demand. This is important because construction remains one of the largest end-use markets for aluminum extrusions.

Automotive and transportation shipments fell by 19%. Manufacturers faced higher cost pressure, which reduced extrusion consumption in a sector already sensitive to borrowing costs, tariffs and consumer demand.

Electrical shipments were the weakest segment. Deliveries fell by 45% after the expiration of federal tax credits for solar panels.

The solar decline shows how policy incentives can directly affect aluminum extrusion demand. When installation incentives weaken, demand for solar frames, mounting systems and related electrical infrastructure can slow quickly.

Revenue still increased by 19.3% to $159.5mn. The gain came mainly from passing higher metal costs through to customers rather than stronger physical volume.

This distinction matters for aluminum processors. Higher revenue can mask weaker demand if it is driven by metal price inflation instead of shipment growth.

Data Centers and Tariff Enforcement Offer Offset

T-slotted extrusion shipments rose by 70% from a year earlier. These products are used in data centers, automation and manufacturing, where demand for data containment and infrastructure continues to grow.

The strength in T-slotted extrusions shows how data center investment is creating new demand pockets for aluminum. As AI infrastructure expands, demand for modular framing, enclosures, racks, support systems and industrial automation structures can increase.

Bonnell also pointed to import competition. The company said new orders were hurt by softer US demand and undervaluation of imported extrusions.

The White House changed enforcement of Section 232 tariffs on aluminum derivative products on 6 April. Primary metal products are now tariffed at 50%, rather than 50% of the reported metal content value inside an item.

Bonnell said the change should close a loophole that allowed undervaluation of imported manufactured aluminum products. Stronger enforcement could improve the competitive position of domestic extruders if applied consistently.

The company is also adjusting its billet strategy. It has moved away from Middle Eastern billet supply and is favouring North American suppliers after supply constraints linked to the US-Israel war on Iran.

Bonnell is also optimising its own billet casting operations at Carthage, Tennessee, and Newnan, Georgia. This should help reduce exposure to external billet supply disruption and improve feedstock control.

The quarter therefore shows two competing forces. End-market demand is weak in several traditional segments, but data center demand, tariff enforcement and domestic billet optimisation may provide strategic support.

The Metalnomist Commentary

Bonnell’s first quarter shows that US aluminum extrusion demand is no longer moving as one market. Construction, solar and automotive are weak, but data centers and tighter tariff enforcement could create a more selective recovery for domestic extruders.

Terrafame Scandium Recovery Study Could Create Europe’s First Domestic Supply

Terrafame

Terrafame scandium recovery plans could give Europe its only domestic scandium production source if a new project at the company’s Sotkamo operations in eastern Finland advances. The Finnish metals producer has launched a pre-feasibility study to assess scandium recovery from existing nickel and zinc production streams.

Terrafame scandium recovery would use the company’s current hydrometallurgical circuits, rather than requiring a standalone scandium mine. That gives the project a potentially lower-risk route because Terrafame already processes polymetallic ore and recovers multiple valuable metals.

Terrafame scandium recovery is strategically important because scandium supply remains extremely limited and heavily concentrated in China. Beijing controls around 85% of global supply and tightened export controls on the metal last year.

The study is expected to be completed by the end of 2026. If the project moves forward, Terrafame could target production in 2029.

Existing Circuits Could Lower Development Risk

Terrafame already produces battery-grade nickel, cobalt and copper. It also recovers uranium as a by-product from the same polymetallic ore system.

Adding scandium recovery to existing process streams could improve the value of Terrafame’s hydrometallurgical platform. It would also show how critical minerals can be extracted from established operations without developing entirely new mines.

This matters because scandium is usually produced in very small volumes as a by-product. Reliable recovery depends on chemistry, process control, impurity management and market qualification.

If successful, Terrafame could become a strategic supplier to European customers seeking non-China scandium. That would support supply-chain resilience for aerospace, aluminium alloys, solid oxide fuel cells and advanced materials.

The project also fits Europe’s wider critical raw materials agenda. The EU needs more domestic and allied sources of small-volume metals that support high-value industrial applications.

China Dominance Keeps Scandium Strategically Sensitive

Global scandium production remains limited at around 40-45 t/yr, while consumption reached about 60t in 2025. That small market size makes the supply chain highly sensitive to export controls and project delays.

China’s dominant position has increased interest in alternative sources. Export restrictions have made scandium more relevant to buyers that need secure material for advanced alloy and energy applications.

Several projects globally could increase supply over the next decade, including developments by NioCorp, Rio Tinto and Sunrise. Combined, these projects could lift global supply to 150-250 t/yr if they reach production.

That potential increase has raised some oversupply concerns. However, scandium demand may grow once buyers have more confidence in long-term availability.

This is a common problem for small critical materials markets. Customers hesitate to design around a material if supply is scarce, but producers struggle to invest before demand is proven.

Terrafame’s project could help break part of that cycle in Europe. A Finnish scandium source would not transform the market alone, but it could give manufacturers a more secure regional option.

The Metalnomist Commentary

Terrafame’s scandium study shows how Europe can extract more critical value from existing polymetallic operations. The opportunity is not only new mining, but smarter recovery of strategic by-products already moving through industrial circuits.

Enduring Reliance Amid Sanctions: Europe’s Russian Titanium Dilemma

VSMPO Titanium

Introduction: A Supply Chain Unbroken in Wartime

Despite sweeping economic sanctions imposed by the West following Russia’s invasion of Ukraine in February 2022, one supply chain has proved remarkably resilient: Russian titanium sponge. Europe’s quandary over this advanced material—indispensable to aerospace, defense, and medical-device manufacturing—has only deepened.

Russia’s Command of Titanium

Russia ranks among the world’s largest titanium producers. VSMPO-AVISMA, the country’s flagship producer, accounts for 90% of Russia’s titanium output and exports to some 50 countries. The company is estimated to control up to 30% of the global titanium market and nearly half of aerospace-grade supply.

Russia’s dominance rests on abundant raw-material reserves and comparatively low energy costs. Because titanium smelting is energy-intensive, commercial viability depends on cheap power and gas—conditions Russia has historically met.

Airbus A380

Trade that Continues Despite Sanctions

On 7 March 2022, Boeing announced it would halt purchases of Russian titanium used in aircraft manufacturing. Rolls-Royce and Boeing subsequently suspended procurement from VSMPO-AVISMA indefinitely.

Europe, however, charted a different course. Airbus urged the European Union to keep Russian titanium outside future sanctions packages. As Airbus chief executive Guillaume Faury argued, titanium represents a small share of Russia’s total exports, so sanctions would inflict little pain on Moscow while dealing a heavy blow to Europe’s aerospace industry.

Today, Airbus still sources roughly half of its titanium from VSMPO-AVISMA. Boeing, by contrast, once relied on Russia for about one-third of its titanium but has since stopped buying Russian material.

The Limits—and Exceptions—of EU Sanctions

Notably, while the EU has restricted imports of Russian steel and coal, titanium has not been sanctioned. The metal remains a strategic material used in fuselages, turbine blades, satellites, and other critical systems.

Dependence on Russian metals endures in other segments as well. From March to June 2022, combined EU-US imports of Russian aluminum and nickel rose to $1.98 billion—more than 70% above the prior-year period.

Washington and Brussels have generally refrained from designating industrial metals as sanction targets. Europe continues to import large volumes of Russian natural gas, and Russia supplies about 40% of global palladium—vital for semiconductors—implicating everything from automobiles to smartphones.

CBAM

CBAM: A New Variable

The EU’s Carbon Border Adjustment Mechanism (CBAM), introduced in October 2023, adds another layer of complexity. CBAM initially covers cement, electricity, fertilizers, iron and steel, aluminum, hydrogen, and certain downstream products in steel and aluminum. After a transition phase through 2025, full implementation begins in 2026, imposing carbon costs on imports equivalent to those borne by EU producers.

While fertilizers, cement, hydrogen, and non-exported electricity may see limited near-term impact, aluminum stands out as a key target sector. Most exports to the EU beyond steel and aluminum are not yet covered, though the European Commission has signaled possible expansion to high-leakage categories such as organic chemicals and plastics.

Russia is structurally disadvantaged under CBAM. Steel production in Russia, Ukraine, and Türkiye tends to be more carbon-intensive, implying higher embedded-carbon costs at the border.

Ambiguities in Sanctions and Industry’s Dilemma

The United States placed VSMPO-AVISMA on its “military end-user” list, restricting access to advanced technologies, but stopped short of a direct ban on titanium sales—an acknowledgment of global industry’s reliance on the material.

Indeed, during the early stages of the war, VSMPO-AVISMA avoided sweeping US and European sanctions. Although Washington temporarily listed the company in December 2020, the measure was later rescinded.

Recent moves, however, suggest a tightening environment. In April 2024, a joint US-UK action prompted the CME and LME to prohibit trade in newly produced Russian aluminum, copper, and nickel dated after 13 April—an effort widely read as constraining Russia’s influence in metals markets.

Ukraine Titanium Mine

Ukraine: A Viable Alternative?

Against this backdrop, Ukraine has emerged as a potential alternative. Until 2020, the country supplied 90% of Russia’s ilmenite—the feedstock for titanium sponge. With that supply chain severed by war, Ukrainian resources could help challenge Russia’s dominance.

US companies have begun talks with Kyiv on a joint venture anchored by the Zaporizhzhia Titanium-Magnesium Plant (ZTMP). Such partnerships could forge a new titanium hub in Eastern Europe, strengthening Ukraine’s economic footing for decades.

The risks are significant. Ongoing conflict and occupation threaten both Donbas deposits and the ZTMP facilities, which remain exposed to shelling and sabotage.

Aviation’s Growth—and Its Dilemma

The aerospace-titanium market was valued at roughly $100 million in 2022 and is projected to grow at a CAGR exceeding 5% from 2023 to 2032—reflecting the rebound in air travel and a pipeline of commercial aircraft programs.

Despite supply-chain turbulence from war, energy constraints, and labor shortages, passenger traffic continues to recover, lifting titanium demand. In October 2022, Airbus announced plans to deliver more than one aircraft per week to India, persisting with expansion despite engine-supply challenges and domestic carrier capacity constraints—developments that further complicate titanium sourcing.

The Reality of Diversification

Boeing reportedly began diversifying away from Russian titanium after the 2014 annexation of Crimea. Airbus, by contrast, remains heavily reliant on Russian supply.

Globally, China produced around 100,000 t of titanium in 2013—twice the combined output of Russia and Japan at the time—making it the world’s largest producer. Japan ranked third, with Osaka Titanium Technologies standing as the world’s second-largest producer of titanium sponge.

The Metalnomist Commentary: An Unfinished Dilemma

Europe’s struggle over Russian titanium sponge epitomizes the knotty realities of modern supply chains. Between economic sanctions and security imperatives, between industrial competitiveness and moral principle, Europe has yet to find a definitive answer.

With CBAM’s full force arriving in 2026, higher carbon-cost pass-throughs on Russian metals seem likely, intensifying pressure to rewire supply. Yet, as Airbus’s position illustrates, displacing Russian titanium in the short term remains daunting.

The gap between industrial necessity and political sanction endures—witness VSMPO-AVISMA’s August 2025 statement that it stands ready to resume cooperation with Boeing. For now, Europe must navigate this dilemma with prudence: balancing sanction principles, industrial realities, and emergent environmental rules—while accelerating the use of recycled titanium wherever feasible.

Derichebourg Recycling Results Rise on Non-Ferrous Strength and Scrap Policy Support

Chhattisgarh, Ferro‑alloy

Derichebourg recycling results improved in the first half of the company’s 2025-26 financial year as stronger non-ferrous demand, higher prices and increased metal volumes lifted earnings. The French recycling group reported Ebitda of €177.8mn for October-March, up almost 10% from a year earlier.

Derichebourg recycling results show how metal recyclers are benefiting from two linked forces. Non-ferrous scrap demand remains firm, while European steel policy is encouraging mills to source more feedstock from within the region.

Derichebourg recycling results also point to continued momentum in the second half. The company expects April-September performance to be comparable to the first half and forecasts full-year Ebitda of €350mn-370mn.

The market responded positively to the filing, with Derichebourg’s share price rising above €10 from €9.50 after the results were released.

Non-Ferrous Metals Drive Earnings Growth

Non-ferrous metals were the main earnings driver. Derichebourg sold 357,100t of non-ferrous metals in the first half, up 4.4% from a year earlier.

Revenue from the non-ferrous segment rose by nearly 20% to €1bn. The average non-ferrous price was almost 15% higher than in the same period last year.

Copper sales were especially strong, rising by 17%. Aluminium sales, excluding ingots, increased by 10%, supported by firm industrial demand.

However, the picture was not uniformly positive. Aluminium ingot sales fell by 15%, while lead sales dropped by 4%, mainly because of weaker demand from the automotive industry.

This split matters for recyclers. Copper and aluminium scrap remain exposed to electrification, infrastructure and industrial manufacturing, while automotive weakness can still pressure selected downstream products.

Derichebourg’s non-ferrous performance shows that scrap is becoming a strategic raw material, not only a waste recovery business. Buyers increasingly need reliable recycled metal flows for cost control, carbon reduction and supply security.

CBAM and Steel Quotas Support Ferrous Scrap Outlook

Ferrous scrap revenue fell by 5% to €649.9mn because lower average prices offset higher volumes. Derichebourg sold 2.13mn t of ferrous scrap, up 2.2% from a year earlier.

European mills increased scrap purchases ahead of the Carbon Border Adjustment Mechanism coming into force in January. CBAM has added complexity to imported steel and raw material calculations, pushing some steelmakers toward European suppliers.

The company also expects ferrous scrap demand to strengthen after the EU introduces new steel quotas and customs duties in July. These measures could support regional scrap flows by making local feedstock more attractive.

Turkey also contributed to stronger scrap demand as steel production increased. That remains important because Turkish mills are major seaborne scrap buyers and can influence European collection and export markets.

Derichebourg is also expanding geographically. The company agreed to acquire Germany’s Scholz Recycling, which operates 180 sites including joint ventures across Germany, the Czech Republic, Poland, Slovenia, Austria and Romania.

The deal is expected to close in the second half of 2026. It will strengthen Derichebourg’s recycling network in eastern Europe, where its presence has been smaller.

The acquisition fits the wider market direction. European recyclers are scaling up as policy, carbon rules and industrial demand make scrap supply more valuable.

The Metalnomist Commentary

Derichebourg’s results show that recycling is becoming a policy-supported industrial supply chain. CBAM, steel trade measures and non-ferrous demand are turning scrap networks into strategic assets for European metals security.

Sumitomo Ambatovy Nickel-Cobalt Exit Marks Costly Retreat From Madagascar Laterite Project

Sumitomo

Sumitomo Ambatovy nickel-cobalt exit marks a major strategic retreat from one of the world’s largest laterite nickel operations. The Japanese trading and mining group will divest its 54.17% stake in Madagascar’s Ambatovy project to Ambatovy Mineral Resources Investment.

The Sumitomo Ambatovy nickel-cobalt exit is unusually costly. The transaction value is negative $418mn, meaning Sumitomo will pay to leave the asset after more than two decades of involvement.

The Sumitomo Ambatovy nickel-cobalt exit reflects years of operational instability, high costs and weak profitability. Sumitomo joined Ambatovy in 2005 and invested around $3bn, but the project generated cumulative losses of about ¥400bn.

The sale is expected to close in the first half of Sumitomo’s financial year ending 31 March 2027. Korea Mine Rehabilitation and Mineral Resources will retain its 45.82% stake.

Operational Instability Undermines a Strategic Nickel Asset

Ambatovy remains strategically important because it produces refined nickel and cobalt. These materials serve stainless steel, battery raw materials, superalloys and industrial supply chains.

However, the project has struggled to operate consistently. Ambatovy combines laterite mining, slurry transport and refining, making it a complex integrated operation with high technical and maintenance demands.

The project was suspended in February before Cyclone Gezani struck eastern Madagascar. It has not yet fully restarted, although market participants expect operations to resume during the current quarter.

Recovery efforts are still continuing. The project has also faced slurry pipeline damage and other processing issues in previous years, which affected output and reliability.

Ambatovy produced about 30,000t of refined nickel in 2025. Cobalt output was estimated at roughly 10% of nickel production.

That production profile gives the asset continuing supply-chain relevance. But strategic metal exposure alone cannot offset weak operating economics if reliability, costs and weather-related risks remain unresolved.

New Ownership Faces Production Reliability Test

AMRI, the buyer, is a UK-based consortium led by mining investment firm Essenwood and South African private equity firm Zungu Investments. The transaction gives the new group control of Sumitomo’s stake in a difficult but potentially valuable nickel-cobalt platform.

For Sumitomo, the divestment removes a long-running drag on earnings. The company expects to record a loss of about ¥70bn in its consolidated April-June results and a non-consolidated loss of about ¥85bn for the full financial year.

Sumitomo said tax effects should limit the net consolidated impact, and the transfer has already been included in its full-year earnings forecast.

For the nickel market, the key issue is not ownership alone. The immediate question is whether the new structure can stabilise output, repair operating weaknesses and restore confidence in Ambatovy’s supply.

Madagascar nickel-cobalt supply remains strategically relevant as buyers look beyond Indonesia-dominated nickel growth. But Ambatovy must prove that it can deliver refined nickel and cobalt reliably before it can regain stronger market importance.

The sale also highlights a broader industry lesson. Large laterite nickel projects can offer scale and battery-metal exposure, but they often carry high capital intensity, technical risk and sensitivity to market cycles.

The Metalnomist Commentary

Sumitomo’s exit shows that nickel-cobalt scale is not enough when operating reliability and cost control fail. Ambatovy’s next phase will depend on whether new owners can turn a strategically valuable asset into a commercially stable supplier.

Uganda Revives Kilembe Copper and Cobalt Mine with Local Partnership

Sarrai Group

Kilembe redevelopment to support copper cathode and cobalt metal output amid evolving global supply outlook.

Uganda is taking a strategic step to revive domestic copper and cobalt production by redeveloping the long-dormant Kilembe Mines. The government signed a production-sharing agreement with Sarrai Group and Nile Fibreboard, two regional manufacturers, to bring the historic site back into operation.

The project will focus on producing copper cathodes and cobalt metal, according to energy and mineral development minister Ruth Nankabirwa Ssentamu. Located in western Uganda, the Kilembe deposit holds over 4 million tonnes of copper, alongside undefined cobalt reserves. The mine benefits from a rail link to a copper smelter in Jinja, situated in eastern Uganda.

Kilembe's History and New Strategic Role

First opened in 1950, Kilembe Mines ceased production in 1982 due to obsolete equipment and high inflation. Now, with improved regional infrastructure and global demand for battery metals, Uganda is poised to become a competitive supplier of refined copper and cobalt.

The redevelopment aligns with a broader trend of African nations seeking resource independence and value-added production. By partnering with domestic firms, Uganda aims to capture more downstream value and reduce dependence on raw material exports.

Global Copper Outlook Adds Context to Uganda’s Move

The International Copper Study Group forecasts a refined copper surplus of 194,000 tonnes in 2025, down from 301,000 tonnes in 2024. Increased output from China and the Democratic Republic of Congo drove last year’s surplus. Uganda’s entry into refined metal markets will slightly increase African contribution to the global copper and cobalt trade.

However, long-term demand for energy transition metals, particularly from the EV battery and renewable energy sectors, is expected to support prices. Kilembe’s restart could position Uganda as a strategic player in the clean energy supply chain, especially for cobalt, which remains crucial for lithium-ion batteries.

LME Approves Listing of China's Greatpower Co. Cobalt Cathode

Greatpower

The London Metal Exchange (LME) has officially approved the listing of Zhejiang Greatpower Co.'s GREATPOWER brand cobalt cathode. This milestone, announced on December 17, 2023, marks a significant step for the Chinese cobalt industry in gaining global recognition. Greatpower, a major player in cobalt production, operates a state-of-the-art cobalt cathode facility in Shangyu district, Shaoxing city, located in eastern China’s Zhejiang province.

Expansion Plans for Greatpower

Since its launch in 2022, the Greatpower cobalt cathode facility has maintained a production capacity of 2,000 tons per year (t/yr). Looking ahead, the company is set to double its output by 2025, with plans to reach 4,000 t/yr. This expansion will help Greatpower meet the growing global demand for refined cobalt, particularly as cobalt remains essential for energy storage technologies, electric vehicle (EV) batteries, and other high-tech industries.

China’s Growing Cobalt Production Capacity

Greatpower’s refined cobalt output, which includes cobalt sulphate, cobalt chloride, and cobalt cathode, contributes to the nation’s rapidly expanding capacity in cobalt metal production. In 2023, the price premium for cobalt metal over cobalt salts has encouraged domestic refineries to increase their production. According to market forecasts, China’s cobalt metal capacity is expected to more than double, reaching around 65,000 tons in 2024, with further potential for growth to 80,000 tons by 2025.

Key players in China's cobalt industry, including Jinchuan, Huayou, GEM, Hanrui, Tengyuan, and Guangxi Yinyi, are expanding their operations. New entrants such as CNGR and New Era Group Zhejiang Zhongneng are also slated to launch production lines in 2024.

Impact of LME Listings

The LME’s approval of cobalt cathodes from China is expected to slightly ease the oversupply in the domestic market. Other Chinese cathode brands already listed on the LME include those from Jinchuan, Yantai Cash Industrial, GEM (Jiangsu) Cobalt Industry, Quzhou Huayou Cobalt New Material, Ganzhou Tengyuan Cobalt New Material, and Zhejiang Greatpower Cobalt Materials. With increasing global demand for cobalt, these listings offer greater market access for Chinese producers while contributing to a more balanced global cobalt supply.

Atlas Lithium Granted Permits for Brazil Refinery Plant Expansion

Atlas Lithium

Atlas Lithium, a prominent U.S.-based lithium producer, has secured key permits from the state of Minas Gerais, Brazil, to build and operate its lithium refinery. This significant step comes as part of Atlas's ambitious expansion plan to scale up lithium concentrate production by mid-2025. With an expected production capacity of 300,000 tons per year, the refinery will process ore extracted from one of Atlas's deposits, significantly boosting the company's position in the global lithium market.

The permit approval encompasses 85 mineral rights spread across approximately 468 square kilometers in the Brazilian states of Neves, Coronel Murta, Eastern Properties, Itinga, Salinas, Santa Clara, and Tesouras. This extensive area is critical for securing the long-term supply of lithium, a key component in the production of electric vehicle batteries and energy storage solutions.

"We are thrilled with today's announcement, as permitting is widely considered the most critical risk in any mining project," said Marc Fogassa, CEO of Atlas Lithium. This announcement marks a key milestone in the company's strategy to meet the increasing demand for lithium, which has surged due to the growth of the electric vehicle and renewable energy sectors.

Strategic Partnerships for Global Lithium Supply

Atlas Lithium has secured offtake agreements with leading international companies, including Mitsui, a major Japanese trading house, as well as Chengxin Lithium Group and Yahua Industrial Group from China. These partnerships are crucial for Atlas to ensure its lithium concentrate reaches global markets, as demand for the metal continues to rise.

Lithium is an essential mineral for the production of batteries used in electric vehicles (EVs), consumer electronics, and large-scale energy storage systems, making Atlas’s production expansion pivotal in the global energy transition. The strategic collaborations with Mitsui and Chinese firms underscore the importance of securing supply chains and meeting global demand for critical raw materials.

Derichebourg Recycling Results Rise on Strong Non-Ferrous Demand

Derichebourg

Derichebourg recycling results strengthened in the first half of its 2025-26 financial year as higher non-ferrous metal volumes and prices lifted profitability. The French recycling group reported Ebitda of €177.8mn for October-March, up almost 10% from a year earlier.

Derichebourg recycling results also benefited from rising copper and aluminium volumes. The company expects similar performance in the April-September second half, supported by firm non-ferrous demand and improving conditions for ferrous scrap.

Derichebourg recycling results highlight a broader shift in Europe. Scrap is becoming more strategically valuable as steelmakers respond to CBAM, new trade measures and pressure to reduce carbon intensity.

Full-year Ebitda is expected at €350mn-370mn. The company’s share price also moved above €10 following the results announcement, from around €9.50 previously.

Copper and Aluminium Lift Non-Ferrous Performance

Derichebourg sold 357,100t of non-ferrous metals during the first half, up 4.4% from a year earlier. Segment revenue increased by almost 20% to €1bn as average non-ferrous prices rose by nearly 15%.

Copper delivered the strongest volume increase, with sales rising by 17%. Aluminium volumes excluding ingots increased by 10%.

These gains show continued demand for recycled metals tied to electrification, infrastructure and industrial manufacturing. Copper scrap is particularly important as buyers look for additional metal units outside constrained primary mine supply.

Aluminium recycling also benefits from tighter sustainability requirements. Secondary aluminium requires significantly less energy than primary production and can help manufacturers lower embedded carbon.

But automotive weakness affected some product categories. Aluminium ingot sales fell by 15%, while lead volumes declined by 4%.

This divergence shows that scrap demand depends heavily on end-use exposure. Copper and processed aluminium benefited from broader industrial demand, while automotive-linked products remained under pressure.

For recyclers, the value proposition is becoming stronger. Industrial customers increasingly need not only scrap availability, but consistent chemistry, traceability and reliable processing.

CBAM and Steel Trade Measures Strengthen Scrap Outlook

Derichebourg’s ferrous scrap revenue fell by 5% to €649.9mn because weaker average prices offset higher sales volumes. Ferrous scrap shipments still increased by 2.2% to 2.13mn t.

European mills increased scrap purchasing ahead of the Carbon Border Adjustment Mechanism entering force in January. Some steelmakers have shifted toward European feedstock to avoid complex CBAM calculations and uncertainty over import-related costs.

This creates a structural advantage for regional scrap suppliers. As carbon becomes part of steel procurement decisions, recycled feedstock can support lower-emission electric arc furnace production and reduce exposure to imported raw materials.

Derichebourg also expects new EU steel quotas and customs duties introduced in July to support ferrous scrap demand. These measures could encourage more regional production and strengthen demand for domestically sourced scrap.

Turkey’s higher steel output has provided additional support because the country remains a major buyer in the international scrap market.

Derichebourg is also expanding its geographic reach through the planned acquisition of Scholz Recycling. Scholz operates 180 sites, including joint ventures, across Germany, the Czech Republic, Poland, Slovenia, Austria and Romania.

The transaction is expected to close in the second half of 2026. It will significantly strengthen Derichebourg’s footprint in eastern Europe and expand access to scrap collection networks.

The Metalnomist Commentary

European scrap is becoming an industrial resource rather than simply a recycling product. CBAM, trade protection and stronger demand for low-carbon metals are increasing the strategic value of large collection and processing networks.

Kloeckner Camalloy Acquisition Expands US Aluminum and Stainless Steel Reach

Camalloy

The Kloeckner Camalloy acquisition strengthens the company’s position in US metals distribution. Kloeckner has acquired Camalloy, a Pennsylvania-based service center focused on aluminum and stainless steel. The deal gives Kloeckner a stronger nonferrous footprint near Pittsburgh. As a result, the Kloeckner Camalloy acquisition expands its reach across several industrial markets.

This matters because service centers play a critical role between mills and end users. Camalloy does not only stock metal. It also provides processing capabilities such as shearing and polyvinyl chloride application. Therefore, the Kloeckner Camalloy acquisition adds both geographic access and value-added service capability.

The location also gives the deal practical strength. Camalloy already serves customers across multiple eastern and midwestern states. That makes the Pennsylvania service center a useful regional platform rather than a narrow local asset. Consequently, Kloeckner gains a stronger base for broader customer coverage.

Aluminum and Stainless Steel Service Center Adds Nonferrous Depth

The aluminum and stainless steel service center fits well with Kloeckner’s broader distribution strategy. Aluminum and stainless products serve diverse industrial sectors with different demand patterns than carbon steel. That gives the company a wider commercial mix. As a result, the acquisition can improve resilience across changing market conditions.

Camalloy also brings processing capabilities that matter in service-center competition. Customers increasingly want shorter lead times and more finished-ready supply. Basic stockholding alone is often not enough. Therefore, the acquisition may help Kloeckner compete more effectively in higher-service regional markets.

This deal also reflects a broader industry trend. Distributors want stronger positions in specialty and nonferrous products, not only volume steel categories. Aluminum and stainless steel often support higher-value industrial applications. Consequently, the Kloeckner Camalloy acquisition may carry more strategic value than its single-site footprint first suggests.

US Metals Distribution Network Gains Better Access to Key Industrial Hubs

US metals distribution reach appears to be one of the clearest benefits of this transaction. Kloeckner said the Camalloy facility will help serve industrial hubs such as Buffalo, Cincinnati, Cleveland, Columbus, and Philadelphia. That gives the company stronger access to important manufacturing corridors. Therefore, the Pennsylvania service center becomes a regional logistics asset as well as an inventory point.

This wider reach could support better customer responsiveness. Industrial buyers often value location, speed, and reliable processing as much as headline price. A well-placed service center can improve all three. Meanwhile, access to multiple nearby hubs can raise asset utilization and sales density.

The acquisition also shows how consolidation can work at the distribution layer. Adding one specialized facility can strengthen product mix, processing capability, and regional reach at the same time. As a result, Kloeckner Camalloy acquisition looks like a focused but practical move in a competitive metals service market.

The Metalnomist Commentary

This deal is not about headline tonnage. It is about distribution quality, customer proximity, and nonferrous capability. In metals service, those advantages often matter more than scale alone.

May sets a new monthly high for global aluminum production

aluminum

In May, global aluminum production reached a new monthly record, driven largely by continued increases in China, where recent heavy rains in Yunnan province restored hydropower capacities, allowing the lifting of previous power restrictions.

According to International Aluminium, the worldwide production of aluminum surged to 6.13 million tons in May, marking a 3.44 percent increase year-over-year. Daily production also saw a rise to 197,900 tons per day, up from the 196,900 tons per day reported in April.

In China, aluminum production jumped nearly 5 percent from last year to 3.65 million tons, approaching the record levels seen in October. Yunnan’s aluminum facilities, previously offline, are now operational again.

Hydropower generation in China has increased by 8.4 percent in the first four months of the year, spurred by heavy and record-breaking rainfall in Guangdong province, enhancing the water supply for hydropower in Sichuan and Yunnan provinces.

Production gains were also noted in other parts of the world. North America’s output rose nearly 3 percent to 338,000 tons, while Western Europe experienced a more than 3 percent increase to 236,000 tons, driven by increased activity at Trimet’s aluminum smelting operations in Germany and France.

Elsewhere in Asia (excluding China), aluminum production rose nearly 3 percent to 407,000 tons in April. South American output saw a significant increase of nearly 6 percent to 129,000 tons.

Production in Russia and Eastern Europe grew by approximately 2.35 percent to 348,000 tons, and output in Australasia was up nearly 2 percent to 163,000 tons.

However, production dipped slightly in the Middle East by less than 1 percent to 525,000 tons, and in Africa, it fell by over 5 percent to 129,000 tons.

Aluminum prices on the London Metal Exchange were notably volatile throughout May, fluctuating between a low of $2,530 per ton on May 8 and a high of $2,741 per ton on May 29, with prices moving erratically between those dates. Prices have trended downward in June, settling around $2,500 per ton so far.

Vale copper and nickel production outlook strengthens for 2025

Vale

Vale copper and nickel production outlook continues to improve as the Brazilian miner delivers a solid third quarter. The company reported higher copper output and broadly stable nickel production, keeping all base metal assets near the upper end of 2025 guidance. This Vale copper and nickel production outlook underscores the importance of Brazil and Canada within the group’s growth plan.

Copper growth keeps Vale on track with 2025 guidance

Vale copper and nickel production outlook is anchored by another strong performance from its copper division. Third-quarter copper production rose 6pc year-on-year to 90,800t, supported by consistent operations in Brazil and steady polymetallic output in Canada. Payable copper sales climbed 14.8pc to 90,000t, helped by smooth logistics and strong market demand.

In Brazil, Salobo drove copper growth with a 13pc output increase to 53,000t on robust mine-mill performance. Sossego slipped just 2pc to 19,900t after a week of planned maintenance, suggesting limited underlying weakness. In Canada, total copper production dipped 6pc to 18,400t as Vale ended copper-precipitate recovery at Thompson, even while Sudbury and Voisey’s Bay both delivered 11pc higher concentrate volumes.

Higher prices also lifted the Vale copper and nickel production outlook. Vale realised an average copper price of $9,818/t, up $833/t quarter-on-quarter, reflecting firmer LME benchmarks and lower treatment and refining charges. Nine-month copper output reached 274,300t, up 11.4pc year-on-year, keeping the group on pace for its 2025 guidance range of 340,000–370,000t.

Nickel production stable as new capacity comes online

Meanwhile, Vale copper and nickel production outlook on the nickel side remains stable despite heavy maintenance. Third-quarter nickel output slipped just 0.6pc to 46,800t, as refinery downtime offset strong mine performance. Nickel sales rose 5.4pc to 42,900t, although the realised nickel price eased 2.3pc to $15,445/t in line with softer LME levels.

In Canada, Sudbury’s finished nickel production fell 31pc to 8,500t because of work at the Copper Cliff refinery, even as ore mined jumped 45pc to 3.6mn t. Voisey’s Bay output surged 74pc to 10,700t, driven by the ramp-up of the Eastern Deeps and Reid Brook underground mines before a planned shutdown in September. Long Harbour refinery set a new quarterly production record, confirming the asset’s role as a core hub in Vale’s nickel chain.

Brazilian nickel production slipped 5pc to 5,900t, but Onça Puma held steady as it completed early maintenance linked to a second furnace start-up in late September. That new furnace adds 15,000 t/yr of capacity, lifting site capacity to 40,000 t/yr and setting the stage for growth from the December quarter onward. Nine-month nickel output reached 131,000t, up 14.4pc, allowing Vale to maintain its 2025 guidance of 160,000–175,000t and support a resilient Vale copper and nickel production outlook.

The Metalnomist Commentary

Vale copper and nickel production outlook highlights how disciplined maintenance and targeted brownfield investments can offset operational noise. Additional nickel capacity at Onça Puma and continued strength at Salobo position Vale to benefit from any upside in copper and nickel prices. For downstream users, the guidance stability signals that Vale remains a reliable anchor in an otherwise volatile base metals supply chain.