Using New Cast Aluminum Boxes for Various Applications. Aluminum is material that is extensively being used today for various applications and purposes. One of the many purposes that it serves is to protect valuable items and component parts from harmful …
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Aluminium Long-Term Outlook Q2 Update
Aluminium Long-Term Outlook Q2 Update. According to Brooke Hunt, industrial production growth is set to average 3.1% p.a. over the period 2009 to 2020, up slightly from 2.7% p.a. for the period 2000 to 2008. China is expected to lead growth with IP anticipated to increase 10.1% in 2009 – 2020.
The economic recession which followed the failure of some western financial institutions and banks ten months ago was initially expected to have only a small effect on Chinese growth. However, the resultant collapse in worldwide demand and subsequent collapse in requirement for Chinese exported products has had a significant effect on the economy of China. The most recent trade data suggests that the fall in demand for Chinese goods may be bottoming out but the trends indicated by these figures do not carry across to the Chinese aluminium market. We expect aluminium demand to fall by 1% in 2009 to 12.7Mt. This contrasts with compound average annual growth of 17.9% p.a. seen over the first eight years of this decade.
As a large section of the global economy slid into recession in late 2008 and into 2009 global aluminium demand has been destroyed, particularly in mature economies and has led to a forecast surplus in 2009 of 2.5Mt. Although we are forecasting a 6% drop in smelter production in 2009, a greater decline of 8.3% is forecast for demand. Stocks are therefore expected to continue to rise in 2009 reaching 102 days of consumption. For the market to be balanced with the current consumption forecast production would need to fall by 12% in 2009. Brook Hunt is forecasting that LME cash prices will decrease from the 2008 average of $2571/t, to $1445/t in 2009. We have allowed for 70kt, 4.9Mt and 8.3Mt of curtailments in 2009, 2010 and 2011 respectively as prices cut into the cost curve. The significant volume of curtailed capacity will act as a cap on prices over the period 2012-2020.
Our analysis of long-run aluminium incentive prices that will provide sufficient incentive (15% IRR) to justify the expansion of capacity to meet incremental demand growth indicates that a price of ~$1928/t ($2009) is required.
Our base case supply forecast is seen as more than adequate to meet projected demand of 57Mt in 2020, equivalent to 3.5% per annum growth. The base case supply forecast can meet projected demand growth of 4.2% per annum, while the combination of Base case and projects in our highly probable category can meet demand growth of 5% per annum through 2020.
SGA production is estimated at 72.4Mt in 2009, down 10.4% y-o-y and is forecast to grow at 4% per annum to 88Mt in 2014 when capacity utilization is projected at 92%. Consequently, we forecast modest spot price appreciation through 2014 from current levels of $210/t to average $270/t or 14.5% of the LME aluminium cash price. Furthermore, there is little or no risk of being capacity constrained through 2020.
Die Casting Videos
Porosity in Die Casting Parts
Porosity in die casting parts. Die casting porosity is an unwanted result brought about by poor handling and method. It would be unclear until you know the meaning of die casting. Die casting is a technique or process of pushing an ample amount of molten material such as metal, plastic or resin into a container then pushing it with great force in a mold until it cools down and takes its form. Usually, metals used for die casting are non-Ferrous metals, or those containing no Iron, because Iron promotes oxygenation and rusting of the metal. The most ordinary metals used are magnesium, copper, zinc, lead and aluminum. Porosity in die casting parts is the presence of large bubbles of air inside the molded material, which makes it easier to break up. Porous die casted materials are commonly regarded to as something with low class and low quality.
Is there a way to reduce the occurrences of porosity in die casting parts? Fortunately, there are a few simple ways to be able to reduce and even eliminate the chances of having porous results in die casting. First of all, you need to conduct check-ups on your machines on a regular basis. Crevices and chinks on the surfaces of your molds allow air to seep through the machine, causing air bubbles within the plastic and metals. You can easily fix this problem by sealing it up with a sealant and cleaning it. Another thing you need to consider is to replace your molten materials with ones which have higher quality. The less cohesive and pure your metals and resins are, the more likely will it cause air bubbles inside.
Manufacturing Aluminum Hardware Handles
Manufacturing Aluminum Hardware Handles. When it comes to manufacturing, one of the best metals to use in certain parts and products is aluminum. This metal is ideal because it is relatively easy to acquire, hence it is cheap. Companies can mine them almost everywhere. Not only is aluminum cheap, its characteristics are of high quality. This metal is comparable to steel when it comes to strength and durability. In terms of weight, aluminum is also significantly lighter than steel as well. This is why it is used in making hardware handles.
Aluminum Hardware Handles are designed so that it can take high amounts of punishment. It is used to be pulled, pushed, turned and takes much abuse in order to open doors and other entry ways. In using Aluminum Hardware Handles, manufacturers can be sure that it will last longer compared to other materials because of its characteristics. And by using die casting, they can also produce them faster and with better consistency.
The manufacturing process known as die casting uses heat and pressure to make the parts or products, in this case, Aluminum Hardware Handles. The process starts with the raw aluminum, it is then subjected to an intense amount of heat in order to melt it. The liquefied metal is then injected into molds where its cavities give its shape. Using pressure of up to 30,000 PSI, the liquid metal is forced into every nook and cranny of the mold. After the mold cools down, the resulting Aluminum Handles have accurate dimensions, consistent and with great surface quality.
Manufacturing Returning From China to California
CP Lab Safety was worried about escalating product costs. So it decided to move its manufacturing overseas — to California.
After more than seven years of using a contract manufacturer in China’s Guangdong province, the Novato company this spring shifted production of its Eco Funnel and some 80 other products in its portfolio to Wright Engineered Plastics in Santa Rosa.
It was a no-brainer for CP Lab Safety CEO Kelly Farhangi: “In the U.S., you can manufacture on a cost comparable to China.”
Companies are “reshoring” manufacturing — even to California and the Bay Area — for reasons that vary as widely as the types of goods returning to American factory floors.
Four Northern California companies in the past five months have reshored products from China to Wright Engineered Plastics, said President and CEO Barbara Roberts. Their reasons range from costs to vicinity to market and from quality to finance.
Chinese manufacturers, for example, won’t ship until a product is completely paid for, Roberts said, and then transportation could add another 30 days or more.
“That’s a double-whammy,” she said.
This is not your granddaddy’s smoke-belching, middle-class-securing manufacturing, but domestic manufacturing advocates say it represents an opportunity for jobs in a down economy.
“At the end of the day, everything else being equal, it’s always best to manufacture near your markets,” said Ken DeWoskin, a senior adviser at Deloitte in China. “But everything being equal has a lot of questions.”
Those swirl around a host of global economic factors like labor quality, cost and overall productivity as well as an unfolding regionalism — shaped by free-trade agreements and common currencies — that puts more emphasis on the proximity of supply chains.
“With the U.S., Mexico, into Central America and South America, you can integrate supply chains even more and at the expense of China-U.S. trade,” DeWoskin said.
Even then, whether it makes sense to reshore manufacturing depends on the product, he said. The supply chain for consumer electronics, for example, is well established in China.
It may make sense, however, to get components from other markets and site final assembly closer to a company’s market, DeWoskin said.
That’s precisely what Tesla Motors looked at when the San Carlos electric car maker opted to ship assembly of its battery packs from a pilot plant in Thailand to California. Those nearly 7,000 lithium-ion cells continue to be made in Japan and Korea, but it didn’t make sense for the assembled packs to sit on a ship for 10 to 15 days, said Diarmuid O’Connell, Tesla’s vice president of business development.
“Is it more expensive in some respects — in real estate and labor — to assemble battery packs in the U.S. compared to some other overseas markets? Yes,” O’Connell said.
But moving assembly close to Tesla’s R&D operations “makes a lot of sense,” O’Connell said, as the company continues to develop and make changes in its technology.
That plays into the thinking of much smaller companies, like Farhangi’s CP Lab Safety, as well. Although it continues to make the molds for its products in China, where Farhangi said there are significant engineering cost savings, the company can make production changes quickly by using a domestic manufacturer.
Whether more companies reshore manufacturing in California — as opposed to another state, Mexico or South America — is largely in the hands of policy makers, said Gino DeCaro of the California Manufacturers & Technology Association.
“California needs to show a deep understanding of manufacturing. We need an analysis of what policies will do to the manufacturing community in the state,” DeCaro said. “That would be a big signal to companies that have looked to California in the past and seen uncertainty.”
Why manufacture in China?
* Shipping costs are at a three- to four-year low.
* Integration of supply chain, especially for products like consumer electronics.
* Labor costs remain cheaper than in the United States.
Why manufacture in the Americas?
* Closer to American markets.
* Integration of supply chain, potentially for things like auto assembly.
* Ease of making changes to orders.
* Time. Products don’t sit on boats for weeks or months.
* Cash use. Chinese manufacturers can require full payment before shipment.
* Strength of currency. As the dollar weakens, the underlying cost advantage of China may dissipate.
Email Ron Leuty at rleuty@bizjournals.com / (415) 288-4939
Kinetic Die Casting manufactures die cast parts for their customers. If you would like to know more about what is die casting or if you would like a quote, please visit our website:Kinetic Die Casting Company
What is Magnesium?
What is Magnesium? It is usually depicted as a metal, second only to steel and aluminum in popularity. Aside from that, people don’t know much more about it, even though it has so many uses. So, what is magnesium?
Magnesium, with the chemical symbol Mg, is the ninth most abundant element in the universe by mass, and eleventh within the human body. Its many applications include making components for electronic devices, photoengraving plates for printing, paper manufacturing, and fireproofing wood. Ever heard of mag wheels? Those shiny high-grade car wheels which guys usually drool over in auto shops? They’re not called that because they’re always featured in car magazines – their name comes from what they’re made out of, which is magnesium.
One of the current major uses of the element is in die casting. Because of its light weight, magnesium is one of the most commonly used metals for this purpose, as compared to zinc and aluminum.
A lot of compounds can be made with magnesium, and these compounds, along with magnesium in its purest form, are used over a wide variety of industries. What is magnesium? It is a very important and useful element – it’s not just a third place metal behind steel and aluminum.
Kinetic Die Casting manufactures die cast parts for their customers. If you would like to know more about what is die casting or if you would like a quote, please visit our website:Kinetic Die Casting Company
