1.

Overview of Aluminium:
Aluminium is one of the lightest metals in the world and as a result it is used widely in the production of
multiple products. This metal has a shiny silver colour and it is malleable meaning it can be bend without
breaking. In nature, aluminium is found in an ore called bauxite. Bauxite is the basic raw material in the
aluminium manufacturing process. Bauxite is converted into alumina in alumina refineries. Aluminium is the
3rd most available element presents in the earth’s crust and the 2nd most used metal after steel. The
Aluminium production process can be divided into upstream and downstream activities. The upstream
process involves mining and refining activities, while downstream process involves smelting and casting &
fabricating. Aluminium downstream fabricated products include rods, sheets, extrusions and foils. Globally,
aluminium is produced by two different methods, the primary production process which involves the
conversion of ores to aluminium and the other is secondary production (recycling) where the aluminium
scrap is recycled to produce aluminium again.

2. Overview of Aluminium Market:

The Global Aluminum Market was valued at USD 163.5 Billion in 2018 and is expected to register 6.5% CAGR
during the forecast period and reach a value of USD 235.8 Billion by 2025. Aluminum is a highly versatile
metal having multiple advantages and is highly recognized for being flexible and lightweight. This metal can
be cast, formed, melted, extruded, and machined, meaning this can be manufactured in assorted shapes and
fabricated to suit different uses. It has wide applications across diverse industries, including machinery and
equipment, electrical, consumer durables, packaging, construction, transportation, and others. Non-toxic,
100% recyclable, corrosion resistance, non-combustible, easy fabrication, attractive appearance, and uniform
quality are some of the benefits of using aluminum.

Various factors are propelling the aluminum market growth. These factors include growing demand from
building and constriction, and automotive industries, economic growth, rapid urbanization, growing
awareness regarding the advantages of using aluminum, and advancements in technology in processing
equipment and aluminum manufacturing technologies. Additional factors pushing market growth include
shifting trends in the F&B industry towards packaged food, rising per capita disposable income, and growing
demand for high strength and lightweight materials for improving the fuel efficiency of cars and reducing the
carbon footprint.

On the flip side, fluctuating raw material costs and fierce competition from alternative materials, especially
plastics and glass, are factors that may deter the aluminum market growth over the forecast period.

3. Key players in Aluminium Market:

1. Emirates Global Aluminum (UAE)
2. East Hope Group (China)
3. BHP (Australia)
4. China Hongqiao (China)
5. China Aluminum Corporation (China)
6. Vedanta Ltd. (India)
7. Century Aluminum Company (US)
8. Aluminum Bahrain B.S.C. (Bahrain)
9. Dubai Aluminum Company Limited (U.A.E)
 10. Norsk Hydro ASA (Norway)
11. RUSAL (Russia)
12. Rio Tinto (Australia)
13. Alcoa Corporation (US)

4. Aluminium Market Forecast and Global Outlook:

 Asia will continue to dominate the market in terms of growth prospects until 2020
 Supply glut and curtailment measures by suppliers will impact production; however, demand will be
driven by transportation, electrical engineering and machinery and equipment industries
 The Aluminum market analysis shows that the Market Drivers include Downstream demand,
Technological advancements, and Demand for light weight and energy-efficient materials
 The Aluminum industry outlook shows that the Major End-Users are Transport: 27 percent,
Construction: 25 percent, Packaging: 15 percent, Electrical: 13 percent and Others: 20 percent
 Highest Production Regions; China, Russia, Canada, India, UAE.
 Highest Consumption Regions: China, US, Germany, Japan, UAE
 Highest Market Maturity Region: APAC, Americas
 The aluminum market analysis shows that the major cost components are Raw Materials: 55–60
percent and Electricity: 24–26 percent

5. Lifecycle of Aluminium:

Bauxite Extraction:
Bauxite is the ore which contains aluminium. It is found in surface deposits in mainly tropical regions.
Aluminium is the third most common element in the earth’s crust.

Alumina Refining:
 Mined bauxite is refined into alumina – a white powder which is essentially aluminium oxide. Refineries are
typically located close to the bauxite mines.

Primary Smelting:
Primary smelting is an energy intensive process in which aluminium is extracted from the alumina. The purity
of the primary aluminium produced is of the order of 99.5%.

Ingot Alloying and Casting:

Primary metal is alloyed and cast into rolling slab or extrusion billet in a casthouse. Casthouses are typically
located at the smelter or at the rolling/extrusion mill.

Rolling/Extrusion Process:
The rolling slab is rolled into specific gauges and widths and heat treated to achieve the engineering
properties required. Billet is extruded though a die into a range of shapes or profiles.

Product Manufacture:
Manufactures utilise rolled foil, sheet or plate, and extruded profiles to manufacture their specific product –
ladders, tankers, beverage cans, foil packaging etc.

Product in Use:
The product containing the aluminum component remains in use – for short periods of less than 60 days such
as in a beverage can or for more than 50 years in the case of aluminium in buildings

End of Product Life:

In the fullness of time products reach the end of their life and are scrapped

Scrap Sorting and Processing:

Aluminium is recovered from the scrapped product using a range of mechanical extraction devices –
shredders, eddy current separators, air knives etc.

Scrap Processing and Recycling:

The aluminium scrap is processed further to remove contaminants and then melted using the appropriate
technology. The resulting aluminium will now be almost identical to primary metal but will still contain
valuable alloying elements such as manganese, magnesium, copper, silicon and chrome.

6. Process of manufacturing Aluminium:

Aluminium production first begins with the mining of bauxite and ends with liquid aluminium
getting converted into various products. The aluminium production process can be broken down into three
stages; first bauxites, which contain aluminium, are extracted from the ground. Second, bauxites are
processed into alumina or aluminium oxide, and finally pure aluminium is produced.
The aluminium process begins with the mining of bauxite. Bauxite consists of 45-60% aluminium oxide, along
with various impurities such as sand, iron, and other metals. Approximately it takes 3-4kgs of bauxite to
produce 1kgs of alumina and it takes 2kgs of alumina to produce 1kg of aluminium. The process of Bauxite
refining involves the use of Bayer Process and once the bauxite is converted to alumina, further on the
process of reduction of alumina to aluminium is called Hall- Heroult process.

7. Structure of the Aluminium Industry:

Bauxite, Alumina and Power constitute the major components of the total operating costs. Other raw
materials used in the manufacturing process included are calcined petroleum coke, caustic soda, aluminium
fluoride, fuel/oil and steam/ anthracite coal. The average electricity consumption to produce 1 ton of
aluminium is about 15,000 kwh, whereas for alumina the same is about 260 kwh per ton. Since it takes 2 tons
of alumina to manufacture 1 ton of aluminium, of the 15,000 kwh, about 500kwh is consumed during the
process of refining the bauxite to alumina, while the rest is consumed in the electrolysis process.

Steps to Manufacture Alumina: Bayer Process

Refined Alumina is then passed through the smelters to get transformed to Aluminium. Manufacturers of
aluminium are located near cheap and abundant sources of power as power is one of the largest cost
components in manufacturing, as production of aluminium requires electrolysis.

Steps to Manufacture Alumina: Hall- Heroult Process

Secondary production of aluminium involves recycling of the aluminium. Aluminium does not lose any of its
properties when it gets recycled. The added benefit when aluminium gets recycled is that it consumes only
5% of the energy needed to make the same amount of primary aluminium. In addition, recycling aluminium
significantly reduces the negative environmental impact of ever-expanding landfills.

8. Trends:
9. Demand for Aluminium:

10. Case studies:

The Apple Phenomenon – Design for the Environment with Aluminum

The challenge to sustainability created by the exponentially increased use of electronic devices in our society
is tremendous. With computer and mobile communication devices reaching individuals in almost every
corner of the planet, enormous amounts of precious non-renewable natural resources such as fossil fuels and
minerals have been permanently lost as these devices are landfilled. In the U.S., the largest consumer
electronics market, only about 18% of retired electronics are recycled, meaning 82% are disposed of, mainly
in landfills.29 The landfilled electronics waste is the equivalent of 2 million tons of mixed materials, primarily
made from non-renewable resources. Some of the resources used to make those materials are extremely
rare and environmentally destructive to extract and produce. The majority of that 2 million tons of landfill is
plastics and glass. These materials are considered recyclable but, in practice, can be difficult to recycle or
reuse and have little value for waste managers and recyclers.

However, this disposable mentality can and is being changed by manufacturers who
design their products with DfE in mind. One already doing so is Apple Computers.

Apple, one of the world’s leading consumer electronics manufacturers, produces a range
of devices, from computers to cell phones to music players. Tens of millions of units are
produced and sold each year. Two decades ago, the company developed environmental
policies to minimize the environmental impact of its products. Apple’s efforts have been
concentrated in the design stage of its products—through minimizing or eliminating toxic
substances, improving product energy efficiency, and reducing product packaging.

In 2008, Apple made dramatic progress in its product design: maximizing the use of perfectly recyclable
materials in the bulk components of all of its products. The use of unibody aluminum computer and iPad
cases was considered revolutionary in the electronics manufacturing world. The impact is obvious: the
recycling value of computers and devices has been dramatically increased and has enabled waste managers
to easily collect and recycle these materials. This design movement has also enabled Apple to close its
product life-cycle loop: all aluminum cases of these devices can be closed-loop recycled into new computer
cases, again and again.

Apple’s use of aluminum extends beyond considerations of its recyclability; it is also functional. Aluminum’s
conductivity helps release heat generated during product use and reduces the need for the separate micro-
motor fan system commonly found in most plastic-encased computers.

This design element reduces material use in the product manufacturing phase and energy consumption in the
product use phase. The designs of Apple’s products are based on actual life-cycle assessment studies. In fact,
the life-cycle footprint is an indicator in Apple’s environmental management practices. Apple is the first
consumer electronics manufacturing company to calculate, disclose and monitor both product life-cycle
environmental footprints and corporate environmental footprints, such as energy consumption, greenhouse
gas emissions, and use of restricted substances in products.

What’s more, Apple’s leading status in the industry has created a ripple effect. Philips Electronics has recently
announced the introduction of an all-aluminum TV set; a significant proportion of the aluminum used in the
Philips TV is recycled aluminum. The product has since won several green product awards.

The All‐Aluminum Body of Audi Cars

The earliest automotive aluminum applications in widespread use were engine components and wheels.
Gradually, aluminum use has extended to other individual components such as interior decorations, bumper
beams, brake components, etc. More recently aluminum has been adopted for use in body-in-white, chassis,
suspension, and front-end systems. One example of the latter is the Audi Space Frame (ASF) system.

In 1994, Audi rolled out the all-aluminum ASF body system for its flagship model A8 in order to “reverse the
spiraling trend for increased weight in the luxury sector.” The system comprised an aluminum space frame
structure and body panels for the entire body-in-white of the car. It was manufactured with extruded, die-
cast, and flat rolled high-strength aluminum and weighed 40% less than a conventional steel body. The ASF
system also indirectly reduced the weight of the vehicle through “reduced chassis and surrounding area,” a
lighter-weight fuel tank, and lower aerodynamic resistance. The ASF is an engineering innovation that
enables Audi to achieve dramatic vehicle weight reduction and, at the same time, a safer vehicle that is easier
to handle and more comfortable. In Audi’s words, the ASF has “remarkable rigidity, which envelops
passengers like a protective shell to provide best-in-class safety with a lower weight.” The ASF’s “stiffness
helps enhance handling by enabling the car to be more responsive, more precise and more stable. Another
benefit of the extensive use of aluminum is its ability to absorb vibration, creating a smoother, quieter
ride.”24 The A8’s first-generation ASF aluminum body weighed 273 kg, compared to 478 kg for the steel body
of a similar-sized car. The point at which the increased energy required to produce the aluminum body is
offset by the fuel savings generated by the lower weight of the car during its use phase is after 90,000
kilometers (56,000 miles) of driving, according to Audi’s life-cycle study. Following that point, fuel savings and
emission reductions accrue as the Audi is driven. The second-generation ASF used in the A8 weighed only 239
kg. Today, the newest Audi A8 aluminum ASF system weighs just 220 kg. This represents a 20% weight
reduction compared to the first generation.

An all-aluminum body is not necessarily the sole right of luxury cars. Audi has shown the world that
aluminum can be economically used to produce lighter and safer mass production vehicles. In 1999, Audi
rolled out the first ASF all-aluminum-bodied mass production car, the A2. The A2 was a full-size family
passenger car that used the ASF aluminum BIW technology and converted other components from iron and
steel into aluminum, including the engine and wheels. These components are standard features on many
passenger cars today. The A2 aluminum body weighed just 156 kg, 43% less than a comparable steel body.
The entire weight of the A2 1.2 TDI model was only 855 kg and achieved a 3-liter-per-100 km, or 78-mile-per-
gallon, diesel fuel consumption performance.

The newest showcase application of the ASF is the Audi A8L Security, launched earlier this year. This highly
armored security sedan is designed to be “capable of withstanding an attack with military hand grenade.”
The application of an aluminum-based body for this car refutes any notion that an aluminum vehicle
compromises safety. The armored floor is made of a special aluminum alloy to “protect against explosive
weapons.” Passing some of the strictest crash and ballistic protection performance testing, the A8L Security
speaks to the safety of aluminum-bodied cars. Audi’s experience in successfully building safe, highly
performing aluminum vehicles highlights the material’s superb potential as a solution to reduce vehicle
weight while improving fuel efficiency, safety, riding comfort, and affordability. Building passenger cars from
aluminum allows consumers to account for not only driving and safety performance when making a
purchasing decision—but for energy-efficiency and environmental performance as well. If all passenger
vehicles in the United States and Canada were to be built with aluminum BIWs, it would require at least an
additional 40 million tons of aluminum and would save 132-211 million barrels of crude oil and 54-86 million
tons of CO2 equivalent in GHG emission reductions annually.

References:

https://www.aluminum.org/sites/default/files/Aluminum_The_Element_of_Sustainability.pdf
https://www.hulamin.com/about/aluminiums-lifecycle
https://www.marketwatch.com/press-release/aluminum-market-2019---2025-historical-analysis-growth-size-
positively-impact-demand-and-supply-sales-revenue-values-price-trends-opportunity-key-manufacture-
industry-share-and-global-forecast-2019-11-05
https://issuu.com/aluminiummiddleeast/docs/middle_east_aluminium_industry_mark
https://www.european-aluminium.eu/media/2545/sample_vision-2050-low-carbon-strategy_20190401.pdf