“India Looks to New Policies to Promote Scrap Metal Recycling” – Metal Miner, 23 February 2015

India’s recycling rate is the one of the lowest in the world, hovering around 25%, while the US’s rate has climbed, now sitting at 90%. India’s recycling rate remains poor because the government is fairly indifferent, and because the population is unaware of the advantages of recycling. The country’s low recycling rate is a stressor on India’s primary production — constantly having to manufacture primary metals instead of recycling scrap has weakened India’s natural resources.

Prime Minister Narendra Modi’s main objective is to push India’s government to become generally proactive and organizations are beginning to take notice. The Metal Recycling Association of India has petitioned the government to create and enforce a metal recycling policy. Recently, there was a 2015 Metal Recycling Association of Indian International Conference in Mumbai, where the participants detailed what they believe India’s government should do to boost scrap recycling, including, “Remove the basic import duty of 5% on steel scrap, give it industry status, subsidize lending rates, allow Foreign Direct Investment and increase financing facilities,” which would make scrap recycling more attractive to bigger companies.

India is growing as a leader in the motor vehicles industries — the country is seventh-largest in the automobile industry and second-largest in two-wheeled vehicles, like scooters and motorcycles. Having a fluid recycling practice would let those industries develop even more in India. Currently, India’s stainless steel factories utilize 53% scrap in their manufacturing processes, while US factories use 76%.

For developing country like India with culture of “nothing goes wasted,” it is imperative that India extrapolates her recycling from “personal ” to “industrial.” India should look to developed countries to further understand how to advance its recycling system, so that it may take advantage of secondary materials, rather than constantly having to create primary materials, a harmful practice for the country.

(From Metal Miner)

Developed and Written by Dr. Subodh Das and Tara Mahadevan

April 3, 2015

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“Company says Louisiana site for new aluminum mill” – WAFB, 21 February 2015

American Specialty Alloys has found a home for its aluminum mill in Central Louisiana, where the $1.2 billion mill is expected to employ at least 650 employees to manufacture aluminum automobile bodies.

The area of land chosen for the factory is approximately 1,200 acres; the factory itself will be 1.4 million square-feet and will generate over 600,000 tons of aluminum sheeting and plating per year. The plant is slated to open in 2016.

For months, the automobile industry has been heading in the direction of aluminum bodies and car parts; the new American Specialty plant will not only bolster the automobile industry’s efforts, but also bolster Louisiana’s economy by amplifying job growth. This new facility will fill the gap of expected higher demand of aluminum auto body sheet alloys.

(From WAFB)

Developed and Written by Dr. Subodh Das and Tara Mahadevan

February 26, 2015

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“California’s Cap-and-Trade Revolt” – Wall Street Journal, 30 June 2014

While West Virginia and Kentucky Democrats are bucking Obama’s climate policy, California Democrats are also fighting similar policy in California, the state’s cap-and-trade program, which is directly effecting the poorest Californians.

Recently, 16 of members of California’s Democratic Assembly wrote a letter to the California Air Resources Board, encouraging the board to revise or postpone California’s cap-and-trade program. The program calls for big manufacturers and power plants to adhere to a state-ordered carbon cap by buying carbon permits or limiting emissions. Transportation fuel suppliers will also have to acquiesce to permits in 2015.

via SF Public Press

via SF Public Press

Assembly Democrats’ minds are on gas prices, which could surge anywhere from 15 to 40 cents per gallon. California has the highest gas prices in the country, in large part due to fuel blending obligations and taxes. In 2012, the Boston Consulting Group anticipated that gas prices would rise anywhere between $0.49 and $1.83 per gallon by 2020. While the program’s objectives are pure—boosting gas prices is supposed to persuade people to drive less, carpool, or purchase electric cars—California’s cap-and-trade is invariably hurting those who cannot afford it. A majority of the 16 Democratic Assembly Members represent minorities and low-income populations.

The Air Resources Board maintains that the objective of the program isn’t to finance new state governmental programs, though California’s 2014 budget does allocate $250 million from carbon permit auctions, as well as 25 percent of future yields, to fund a high-speed rail. The auctions will bring in anywhere between $12 billion to $45 billion by 2020.

Assembly Democrats are in agreement with the California Chamber of Commerce, which is suing the Air Resources Board to invalidate California’s program.

Developed and Written by Dr. Subodh Das and Tara Mahadevan

June 30, 2014

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“Aluminum Cars Take Heat from ArcelorMittal’s CEO” – Wall Street Journal, 17 June 2014

Europe, China, and the US have all cracked down on fuel economy standards; President Obama has introduced new regulations to improve the average fuel economy by 54.5 miles per gallon by 2025. Automobile companies, like Ford, are responding to the new regulations by creating a new line of F-150 pickups made out of all-aluminum bodies, and many other US car manufacturers are following suit. However, Luxembourg-based ArcelorMittal, the world’s largest steel company, is an aluminum naysayer, contending that aluminum isn’t actually lighter than new designs of steel.

Due to US and European automotive companies’ move to aluminum, ArcelorMittal is now looking to expand and invest in developing economies, like China, Brazil, Mexico, India, and the Middle East, where steel is still heavily used.

According to Ducker Worldwide, 18% of vehicles will be produced entirely from aluminum by 2025, which will surely help the automotive industry to meet Obama’s proposed fuel economy standards. Though more expensive, aluminum is argued to be a lighter metal, which will thusly help to improve fuel efficiency; in the US, manufacturers’ fuel economies must increase by five percent each year until the 2025 mark. However, as ArcelorMittal presents, the flip side to manufacturing the same cars with all-aluminum bodies is to manufacture smaller cars out of steel, which was save the car industry the added expense of aluminum.

ArcelorMittal’s focus right now is on China, where it just opened VAMA, its first steel-manufacturing plant and a multi-million dollar undertaking with Hunan Iron & Steel Co. Through VAMA, the Chinese automotive industry will have access to 1.5 million tons of steel per year, an industry that has grown by 16% since 2013.

According to ArcelorMittal, the statistic that aluminum is 30% to 40% lighter than steel is only accurate if you’re equating aluminum to steel made in 2005. Steel produced in 2014 is harder and lighter than previous versions; current forms of steel have been refined using a distinctive heating and cool process. However, the Ducker Worldwide study still projects that a majority of automobiles will be manufactured out of aluminum parts by 2025.

Developed and Written by Dr. Subodh Das and Tara Mahadevan

June 17, 2014

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