Chinas crackdown on imports of hazardous raw materials,
dubbed Operation Green Fence, has spurred Aleris International
Inc. to create a platform for processing low-grade scrap in the
United States, the company said during a Nov. 6 earnings
"In the third quarter
our spreads benefited from Operation Green Fence," Aleris
chairman and chief executive officer Steven J. Demetriou said,
adding that availability of lower-quality scrap products had
improved since the initiative began in March. "We have
installed new scrap processing equipment, which will allow us
to process lower-quality scrap products."
Recycling and Specification Alloys North America segment posted
adjusted earnings before interest, taxes, depreciation and
amortization (Ebitda) of $15.7 million in the third quarter, up
70.7 percent from $9.2 million a year earlier.
Segment income was
positively affected by a 2.4-percent increase in overall
volumes to 216,100 tonnes, driven primarily by demand for
specification alloys from the domestic auto industry.
segment benefitted from productivity gains related to furnace
and scrap optimization, which more than offset inflation,
according to Cleveland-based Aleris.
The primary aluminum
cash contract on the London Metal Exchange ended the official
session Nov. 6 at $1,784.50 per tonne (80.9 cents per pound),
down 5.4 percent from $1,887 per tonne (85.6 cents per pound)
on the same day last year.