Dr. Ing. Mar*n Tauber Metal Bulle*n s 24th Interna*onal Al Recycled Alumnium Conference, Slovakia

Transcription

1 Dr. Ing. Mar*n Tauber Metal Bulle*n s 24th Interna*onal Al Recycled Alumnium Conference, Slovakia

2 Content ü Which series of alloys contain magnesium and what are the main applica*ons? è Almost all Al alloys contain Mg and demand growing ü Examining the supply- demand fundamentals of magnesium what implica*ons for procurement by aluminium companies? è Sustainable sourcing as chance for Mg ü What other raw materials flagged as cri*cal are key to alloy performance and quality? è Strategic & cri*cal raw materials; conflict minerals ü What issues do these pose for aluminium recycling loops and what are the main environmental considera*ons? è High recycling rates thanks to efficient Al set- up ü How does recycling of these alloying elements contribute to resource conserva*on and efficiency? è Legal frame works and process innova*on

3 What are strategic or cri*cal materials? EU cri*cal raw materials are those raw materials, which are economically and strategically important for the European economy but have a higher risk of supply interrup*on. Candidate (inves*gated) materials These materials represent a diverse group, including materials that are mined or cul*vated as well as some refined materials that are considered highly important to downstream sectors. Conflict Minerals EU poli*cal aims for EU companies to source *n, tantalum, tungsten and gold responsibly. These minerals are typically used in everyday products such as mobile phones, cars and jewellery.

4 What are cri*cal raw materials? The (20) 2014 EU listed CRMs out of (89) different substances (inves*gated)

5 What are conflict minerals? The (4) conflict minerals; Tungsten also being a CRM

6 What are main alloying elements to Al? Currently, over 400 wrought and over 200 cas*ng alloys are registered

7 Registered alloying elements for Al Alloying (Mg content) 1xxx Aluminium 99.00% or greater 2xxx Copper 2 6% ( %) 3xxx Manganese % (0-1%) 4xxx Silicon 7-13% ( %) 5xxx Magnesium 1-6% (1-6%) 6xxx Magnesium & Silicon 1 & 0.6% (0.6-1%) 7xxx Zinc 4-8% ( %) 8xxx Other elements

8 Mg alloying use in different Al sectors? ü Primary aluminium smelters: è Cas*ng billets, rolling slab, foundry alloys ü Rolling mills: è Mg as alloying agent ü Remelt billet makers and extruders: è Secondary Mg mainly from scrap ü Secondary aluminium smelters: è Die- cast/foundry alloys mainly from scrap (Al & Mg)

9 Main Mg alloying use per Al alloy 5 principles

10 PRC dominant in primary Mg produc*on Source: China Nonferrous Metals Industry Associa*on - The Nonferrous Metals Society of China 2016/Kyoto

11 PRC dominant in primary Al produc*on China has always pay alen*on to the magnesium alloys applica*on in the automobile industry. the instrument panel, front and rear subframe, wheels, steering bracket and other parts have been developed in the plamorm of a independent research and developed hydrogen fuel car. The total amount of Source: China Nonferrous Metals Industry Associa*on - The Nonferrous Metals Society of China 2016/Kyoto

12 Mg supply/demand fundamentals ü Significant long- term over- capacity in China: è Global market of 850 kto vs. installed over- capacity of 1,8 mio mt ü Regional market protec*on: è An*- dumping rules installed in US and Brazil ü Environmental concerns: è Higher CO 2 emipng produc*on process in China; enforcement lately ü Main price fundamentals in China not within the Mg industry: è High dependent on FeSi (grade 75%), steel and coal industry ü No trading regula*on: è Market volume too small for e.g. LME lis*ng ü Small markets & non- favourite history: è Lightweight mix component; market development and high CAPEX caused many primary projects to fail

13 Mg demand & industry mix Source: C&M at IMA 2016/ Rome

14 Main message for the Aluminium industry Alloying elements are essen*al for reaching compe**ve proper*es, such as strength, corrosion resistance and processing parameters However, CRM policy is supposed to secure supply, subs*tu*on efforts can significantly weaken the Al industry Primary alloying elements such as Mg and Si will most probably remain on the EU CRM list, and most of the common alloying elements are listed Alloying elements require equal considera*on when it comes to sustainable sourcing and resource efficiency Dependency on pre & post consumer recycling processes

15 Global & Corporate repor*ng interface

16 Mandatory repor*ng instrument

17 Mandatory repor*ng instrument Repor*ng sustainability makes it more valuable. One of the main corporate benefits is reputa*onal, another is the requirements of the supply chain. Repor*ng is an integral part of sustainability. Repor*ng mechanisms such as the GRI reinforce this. Global investors will only invest in companies in this part of the world if they see that companies are repor*ng honestly.

18 Shis from shareholders to stakeholders ü In 2014, the European Parliament passed a new law will require its biggest companies to include sustainability factors as part of their annual financial reports ü Today, companies voluntarily produce sustainability reports; that will rise to nearly by 2017, when the law goes into effect ü Addressing their supply chains is the next big task

19 From voluntarily to mandatory a chance for profiling of alloying elements? ü OEMs and Tiers need to talk more about their raw material procurement strategies ü Sustainability is already used on a large scale for all stakeholder communica*on ü Excellent examples from Aluminium and Automo*ve companies ü Major alloying elements must claim its value for sustainable content, in all major applica*ons and markets

20 The Magnesium Metal value chain Source: VW at IMA 2013/Xian

21 Corporate Aluminium Reports Text analysis based on LingRep technology by econob/austria

22 Corporate Aluminium Reports Text analysis based on LingRep technology by econob/austria

23 Corporate Automo*ve Reports Text analysis based on LingRep technology by econob/austria

24 Corporate Automo*ve Reports Text analysis based on LingRep technology by econob/austria

25 Concepts & Tools: Carbon Impact Factor ü CIF enables OEMs to demonstrate and communicate their efforts to reduce carbon intensity (risk) within their supply chain ü Osen no traceability of raw material inputs beyond the primary processing point ü As a result, different raw material data are aggregated or compounded Source: Introducing the The Carbon Impact Factor/2015

26 Sustainability enable high volume growth? ü Magnesium industry need to invest into global spread raw material/semi- fabricated material supply base ü Magnesium stakeholders need to engage into global policy process and inform & promote Magnesium ü Magnesium needs to par*cipate in own Circular Economy best prac*ces projects, and close informa*on gaps on e.g. process recycling & ELV ü Informa*on of Magnesium LCA must be up- dated and easy accessible for different value- chains and stakeholders to enable green procurement strategies ü Magnesium must show its sustainable value in the Aluminium industry ü Aluminium needs to name Magnesium in their overall/sustainable communica*on

27 EU policy and (cri*cal) raw materials

28 Circular Economy needs (also) raw materials

29 LCA example Magnesium sourcing Source: LCA study DLR 2015 for ESAN Magnesium/Turkey

30 ELV vehicles recycling flows Source: Automo*ve aluminum recycling at end of life: a grave- to- gate analysis/wpi 2016

31 ELV vehicles recycling flows Source: Automo*ve aluminum recycling at end of life: a grave- to- gate analysis/wpi 2016

32 Example embedded recycling flows Light gauge frac*on Source: Automo*ve aluminum recycling at end of life: a grave- to- gate analysis/wpi 2016 ü Fragmented non- ferrous metal mixture ZORBA typically 65% Al è contains copper, lead, magnesium, stainless steel, nickel, *n and zinc ü Floated, fragmented scrap stream TWITCH typically 90-98% Al è contains no more than 1% free zinc, 1% free magnesium, 1% of free iron, less than 2% non- metallic and 1% free rubber or plas*c ü Fragmented auto scrap TWEAK è contains max. 4% free zinc, 1% free magnesium, 1,5% of analy*cal iron and no more than a total 5% non- metallic.

33 Conclusions ü Growing markets - Alloying elements, such as magnesium, manganese, silicon, zinc and copper play a vital role in proper*es of Al alloys. Growing applica*ons for Mg, like automo*ve sheet and can stock contain significant quan**es for their own markets and are high important for its supply/ demand development. ü Overall LCA - Alloying elements should be part of individual sustainable procurement strategies, and also CO 2 saving on alloy element sourcing should be featured. ü Cri*cal materials Alloying elements must play an integrated role in mandatory and green procurement. ü End of life scrap Alloying elements material flow (Material Flow Analysis, Circular Economy) are an integrated part of the e.g. Aluminium recycling loops.

34 Links & info EU CRM list 2014: hlps://ec.europa.eu/growth/sectors/raw- materials/specific- interest/cri*cal_en Interna*onal Magnesium Associa*on (IMA): hlp:// Minor Metal Trade Associa*on (MMTA): hlp:// Associa*on of Euro Ferro- Alloys producers (Euro Alliages): hlp:// Cri*cal Raw Material (CRM) Alliance Rue de l Industrie 4 B Brussels Tel: +32 (0) oh@crmalliance.org hlp://cri*calrawmaterials.org