Weekly Metals News Digest – July 22-26
European Union Increases Titanium Imports from Russia
Fluctuating Import Figures
Titanium exports from Russia to the European Union have shown mixed trends in 2024. Over the first five months, exports decreased by 22%, totaling $14.2 million. However, in May, there was a notable increase of almost one-third compared to April, reaching $3.4 million.
Country-Specific Import Growth
France: Increased imports 3.4 times, reaching $1.5 million.
Germany: Increased its imports of Russian titanium by 20%, reaching $1.2 million.
Italy: More than doubled its imports to $186,500.
Historical Context
In 2023, Russian titanium supplies to the EU amounted to 6,410 tons, down from over 10,000 tons three years earlier. The reduction followed Russia's military actions in Ukraine, leading European companies to cut down on Russian titanium. However, due to limited domestic production and unreliable supply from other sources, European machine-building companies are increasing their reliance on Russian titanium.
London Metal Exchange Digitizes Aluminum Supplies
Innovative Integration
Emirates Global Aluminium has digitally linked its primary aluminum quality analysis system with the London Metal Exchange's (LME) trading and warehousing system. This integration automatically sends metal analysis certificates to the LME, ensuring compliance with quality, shape, and weight standards.
Benefits of Digitalization
LME's Digital Strategy: As part of its digital strategy, the LME mandates all primary aluminum smelters listed on the exchange to digitize their certificate submission processes by October 2024.
Improved Traceability: Digital certificates enhance the traceability and availability of primary aluminum.
Increased Transparency: The transparency of aluminum supply is boosted, eliminating the need for paper documents.
Cyprium Metals to Restart Nifty Copper Mine in Australia
Partnership with Glencore
Cyprium Metals has entered into a commercial partnership with Glencore for the supply of copper concentrate from the Nifty mine. Glencore will make an upfront payment of $13 million and commit to purchasing the copper concentrate post-restart.
Historical Background
The Nifty mine, operational from 1993 to 2019, produced around 700,000 tons of copper. It switched from electrowinning to producing copper concentrate in 2006. The mine was suspended in 2019 due to low global copper prices but was acquired by Cyprium Metals in 2021, which now plans to restart operations.
Viridian Lithium's Plans for a New Plant in France
New Plant in Lower Rhine Basin
French company Viridian Lithium plans to build a lithium hydroxide plant with a capacity of 28.5 thousand tons per year in the Lower Rhine basin. The Strasbourg River Port Authority has agreed to transfer a 20-hectare plot of land for this purpose.
Project Timeline and Challenges
Viridian Lithium aims to launch the plant in 2027, capable of providing lithium for 2 million electric cars annually. However, previous announcements in 2022 targeted a 2025 start, and rising construction costs could affect the project’s budget, initially estimated at 140-165 million euros.
Extraction Methods and Competition
While the extraction method is unspecified, it may involve using mineral-rich underground water from the Lower Rhine basin. Other companies like Lithium de France and Imerys are also pursuing similar projects in France.
Vedanta Aluminium Seeks Solutions for Red Mud Waste
Indian company Vedanta Aluminium and the analytical center NITI Aayog are investigating the potential uses of red mud, a byproduct of alumina production. Typically stored in extensive facilities, red mud poses significant environmental hazards.
Exploring Recycling Options
Possible Applications
Road Construction: While feasible, this too requires alkali removal, making large-scale processing difficult.
Flux Additive: Could be used in ferrous metallurgy, though high alkali content removal costs remain a challenge.
Scandium Extraction: Red mud could be a source of scandium, enhancing aluminum alloys' strength for aviation, but does not solve the red mud disposal issue.
Forecast: Digitalization to Transform Metal Trading
LME's Digital Registry
The London Metal Exchange began creating a digital registry for non-ferrous metals in 2021 to enhance supply transparency. The initiative gained urgency after a scandal in 2023 involving mislabeled nickel in the LME’s Rotterdam warehouse.
Benefits and Future Prospects
The digital registry will provide detailed producer information, including ESG commitments, and help enforce import bans, such as the UK’s ban on Russian aluminum. The move toward digitalization, including blockchain technology, promises faster transactions and greater transparency for global market participants over the next decade.
