Economy
Alcoa Challenges AHSS with New Aluminum Alloy
Written by Sandy Williams
January 15, 2015
A fresh challenge to advanced high strength steel has emerged with a new product from Alcoa called Micromill. The new alloy is stronger, lighter and more formable than previous aluminum alloys.
“We cracked the magic formula,” said Alcoa CEO Klaus Kleinfeld during the Q4 2014 earnings call. “In the past, if you wanted more formability, you typically had to give up strength. If you wanted more strength, you had to give up also on weight. So you typically had stronger, which was heavier, which was less formable, that’s breaking the formula.”
Another advantage of the new alloy is the ability to produce it quickly. “What used to take 20 days to go from melting to rolling that coin, now in the micro-metal process takes 20 minutes. It all happens in a footprint that’s about a quarter of a conventional mill,” said Kleinfeld. The new alloy will be a value-added product sold at value-add premium margins.
Alcoa has successfully completed customer trials and has secured an unnamed strategic development customer. The company has prioritized the automotive industry for use of the new alloy but the micro-metal process can be applied to many other applications, said Kleinfeld. Alcoa is in the process of seeking qualification for specific automotive platforms which will mean limited use in 2015, but Kleinfeld stressed that the product is a breakthrough that the company is very confident in.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
US housing starts gain momentum in July
US housing starts rose in July both month-on-month and year-on-year, according to figures from the US Census Bureau.
Manufacturing in New York state improves again in August
Business activity in New York state improved modestly in August. It was just the second positive reading for the general business conditions index in six months.
President Trump intends to set additional steel tariffs
While boarding Airforce One on Friday, US President Donald Trump stated that he would be setting more steel tariffs and putting ~100% tariffs on semiconductors and chips.
Hot-rolled spot market conditions linger, prices slip
Market participants said they have high hopes that the stable hot-rolled spot market will improve as the year rolls on.
Dodge Momentum Index surges in July
The Dodge Momentum Index (DMI) jumped 20.8% in July and is now up 27% year-to-date, according to the latest data released by Dodge Construction Network.