EGA Minnesota aluminum billet output begins at Spectro Alloys

EGA

Capacity, timeline, and circular aluminum strategy

EGA Minnesota aluminum billet output begins at Rosemount after the Spectro Alloys expansion. The first phase targets 55,000 tonnes. EGA Minnesota aluminum billet output strengthens regional recycled aluminum supply.

The $71 million project lifts site capacity to 165,000 tonnes annually. The expanded facility produces recycled aluminum ingots and billets. EGA owns 80% of EGA Spectro Alloys, ensuring control over operations.

Management expects full production by the first quarter of 2026. The phased ramp supports quality and customer qualifications. Customers gain reliable secondary billet for automotive and extrusion demand.

U.S. growth plans and market implications

EGA plans a $4 billion primary aluminum plant in Oklahoma. That smelter targets 600,000 tonnes per year. The U.S. footprint spans recycling and primary metal, improving supply optionality.

Recycled billet reduces carbon intensity and energy costs. As a result, buyers meet tightening sustainability requirements. Integrated sourcing should stabilize lead times and alloy consistency.

EGA Minnesota aluminum billet output complements U.S. primary ambitions. Therefore, North American buyers gain supply security and product diversity. The combined strategy supports long-term customer partnerships.

The Metalnomist Commentary

This expansion pairs circular feedstock with a coming primary smelter. Execution hinges on scrap availability, energy pricing, and extrusion demand. Watch qualification timelines and the Oklahoma financing path.

Century Aluminum Sees Q2 Shipment Decline, Anticipates Q3 Recovery Boost

Century Aluminum, a leading producer of primary aluminum, reported a decrease in shipments for the second quarter, though it remains optimistic about a rebound in the third quarter. The company expects that higher aluminum prices and increased demand for domestic billet products will drive recovery, despite a drop in overall production.

In the second quarter, Century Aluminum's shipments fell to 167,908 metric tonnes (t), down from 173,649t during the same period last year. The decline was felt across all operations, including its key U.S. facilities in Sebree, Kentucky, and Mt. Holly, South Carolina. Combined, these facilities shipped 93,805t in the quarter, a decrease from 97,224t in the previous year. The company's Icelandic smelter at Grundartangi also saw a drop in primary aluminum shipments, falling to 74,103t from 76,425t a year ago.

Despite the downturn, Century Aluminum's Sebree facility operated at full capacity, producing at 100% of its 220,000t annual capacity. Mt. Holly operated at 75% of its 230,000t annual capacity, while the Grundartangi plant maintained 100% of its 320,000t annual capacity.

During the quarter, the U.S. Department of Commerce imposed preliminary anti-dumping duties on billet imports from 14 countries, which Century Aluminum believes will spur domestic demand. The company’s Sebree and Mt. Holly plants have a combined billet and slab capacity of 295,000t annually, and the decision is expected to provide significant support to these operations.

In addition to market dynamics, Century Aluminum noted that alumina prices are currently at a two-year high, driven by supply disruptions in Australia and increased regulation in China. These factors have pushed the cost of alumina, a key input for aluminum production, to account for a higher percentage of production costs than usual.

In the third quarter, Century’s Jamalco alumina refinery in Jamaica faced disruptions due to Hurricane Beryl, though operations have since stabilized at 80% of the refinery’s 1.2 million lbs/year capacity. However, damage to the main export port in Clarendon Parish forced the company to reroute shipments and declare force majeure on alumina deliveries.

Financially, Century Aluminum reported a 2.5% drop in second-quarter revenue to $561 million, with a loss of $6.7 million, a sharp contrast to the $6.6 million profit recorded in the same period last year.

EGA to Acquire Majority Stake in US-based Spectro Alloys, Expanding Into Secondary Aluminum Market

Emirates Global Aluminium (EGA), the UAE's primary aluminum producer, is set to acquire an 80% stake in Spectro Alloys, a Minnesota-based secondary aluminum smelter. This move marks a strategic expansion into the U.S. market, bolstering EGA’s presence in a region that accounted for over a quarter of its global aluminum sales in 2023, equating to 550,000 metric tonnes.

The acquisition of Spectro Alloys will significantly enhance EGA's capabilities in the secondary aluminum sector, which involves the production of aluminum primarily from recycled scrap. This market is poised for substantial growth, with estimates suggesting that recycled aluminum will drive 60% of global aluminum supply growth by 2030, increasing to 70% between 2030 and 2040.

This latest acquisition aligns with EGA’s broader strategy to capitalize on the growing demand for sustainable aluminum. In May, EGA acquired German specialty foundry Leichtmetall, which has an annual production capacity of 30,000 tonnes. Additionally, EGA is constructing a recycling plant in the UAE, set to produce 170,000 tonnes of aluminum billets annually from both pre- and post-consumer scrap.

Spectro Alloys, with its current production capacity of 110,000 tonnes of aluminum ingots per year, is also expanding. The company began construction in March on an expansion project that will add 55,000 tonnes of billet production capacity in its first phase.

The transaction, pending regulatory approval, is expected to be finalized this quarter. Financial details of the deal have not been disclosed.

CBA Forecasts Higher Aluminum Sales Despite Production Cuts in 2025

cba

Brazilian aluminum producer CBA projects increased aluminum sales for 2025, targeting 500,000 metric tonnes despite planned production reductions in the coming months. The company anticipates stronger demand from construction, energy, and automotive sectors will drive sales growth, even as scheduled refinery maintenance temporarily constrains output capacity.

Production Challenges and Market Strategy

CBA expects aluminum production to decline significantly during the second quarter due to planned refinery maintenance, cutting output to 80,000 tonnes. However, the company projects production will recover to 90,000 tonnes by the end of the third quarter as maintenance activities conclude. Meanwhile, aluminum prices are expected to stabilize between $2,350-$2,400 per tonne throughout the forecast period.

The company's first quarter performance showed mixed results across different product segments. Primary aluminum segment sales decreased by 7% to 61,000 tonnes, down from 66,000 tonnes in the prior year, primarily due to reduced billet sales. Conversely, recycled aluminum sales surged 19% to 26,000 tonnes, compared to 20,000 tonnes in the same period last year.

Export Dynamics and Global Market Influences

CBA's export strategy has shifted significantly, with exports representing only 4% of shipments in the first quarter, down from 10% in the previous year. This reduction reflects changing market dynamics and the company's focus on domestic demand. Therefore, CBA concentrates on serving Brazilian markets while maintaining selective international presence.

Global scrap market conditions increasingly influence CBA's operational decisions and cost structure. The company considers adjusting scrap usage patterns as higher US demand, driven by tariff exemptions, has elevated scrap prices worldwide. As a result, these market dynamics require strategic planning to maintain competitive pricing while securing adequate raw material supplies.

However, CBA remains optimistic about aluminum demand prospects across key industrial sectors. The construction, energy, and automotive industries show promising growth trajectories that support the company's ambitious sales targets for 2025.

The Metalnomist Commentary

CBA's strategic approach demonstrates the complex balance between production constraints and market opportunities in the global aluminum industry. The company's ability to increase sales despite lower output reflects strong domestic demand and efficient capacity utilization, positioning CBA to capitalize on Brazil's growing industrial aluminum consumption.

Spectro Alloys Broadens Aluminum Recycling Operations in Minnesota

Spectro Alloys

Minnesota-based Spectro Alloys has successfully completed a significant expansion at its Rosemount campus, enhancing its capabilities in aluminum billet production and recycling.

A Major Step in Aluminum Recycling Capacity

The newly constructed 90,000 square foot facility marks a pivotal development in Spectro's production strategy. Set to commence operations in the second half of this year, the expansion will significantly boost the company's recycling capacity by approximately 120 million pounds per year (54,431 metric tonnes).

Future Production and Impact on the Industry

Once fully operational by the first quarter of 2026, Spectro expects the facility to produce 55,000 tonnes per year of aluminum billet. This ramp-up in production underscores Spectro's commitment to increasing its footprint in the aluminum recycling market and contributing to more sustainable manufacturing practices.