ALUMINIUM DROSS PROCESSING AND SCRAP MELTING UNIT

[EIRI/EDPR/3699] J.C.: 1786

INTRODUCTION

Ingots are very large casting products, greater in size and shape than blooms,
billets and slabs. Ingot generally has rectangular/square cross section, but it is
not necessary that it should be uniform throughout its length. (Ingot may have
variable cross section.)

GRADES OF AL INGOT

Aluminium Alloy Ingots Iike LM-2, LM-4, LM-6 which are commonly used in
Gravity and Sand Casting, Pressure Die Casting Alloys like LM-13, LM-14, LM-24,
ADC-12, ALSI-132 etc are also being manufactured as per the Indian and
International standards.

TECHNICAL SPECIFICATION OF ALUMINIUM ALLOY INGOT

WT IN KG : 8-110
HEIGHT : 70MM
WIDTH : 110MM
LENGTH : 600MM

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ALUMINIUM ALLOY INGOT CHEMICAL COMPOSITION

Si Fe Cu Mn Mg Ni Zn Sn Ti Pb Cr
Alloy

AC1A 1.20 max 0.50 max 4.0-5.0 0.30 max 0.20 max 0.05 max 0.30 max 0.05 max 0.25 max 0.05 max 0.05 max

AC1B 0.20max 0.35 max 4.2-5.0 0.10 max 0.20-0.35 0.05 max 0.10 max 0.05 max 0.05-0.30 0.05 max 0.05 max

AC2A 4.0-6.0 0.80 max 3.0-4.5 0.55 max 0.25 max 0.30 max 0.55 max 0.05 max 0.20 max 0.15 max 0.15 max

AC2B 5.0-7.0 1.0 max 2.0-4.0 0.50 max 0.50 max 0.35 max 1.00 max 0.10 max 0.20 max 0.20 max 0.20 max

AC3A 10.0-13.0 0.80 max 0.25 max 0.35 max 0.15 max 0.10 max 0.30 max 0.10 max 0.20 max 0.10 max 0.15 max

AC4A 8.0-10.0 0.55 max 0.25 max 0.3-0.6 0.35-0.60 0.10 max 0.25 max 0.05 max 0.20 max 0.10 max 0.15 max

AC4B 7.0-10.0 1.0 max 2.0-4.0 0.50 max 0.50 max 0.35 max 1.00 max 1.00 max 0.20 max 0.20 max 0.20 max

AC4C 6.5-7.5 0.55 max 0.25 max 0.35 max 0.25-0.45 0.10 max 0.35 max 0.05 max 0.20 max 0.10 max 0.10 max

AC4CH 6.5-7.5 0.20 max 0.20 max 0.10 max 0.30 -0.45 0.05 max 0.10 max 0.05 max 0.20 max 0.05 max 0.05 max

AC4D 4.5-5.5 0.60 max 1.0-1.5 0.50 max 0.45-0.60 0.20 max 0.30 max 0.05 max 0.20 max 0.10 max 0.15 max

AC5A 0.60 max 0.80 max 3.5-4.5 0.35 max 1.30-1.80 1.7-2.3 0.15 max 0.05 max 0.20 max 0.05 max 0.15 max

AC7A 0.20 max 0.30 max 0.10 max 0.60 max 3.6-5.5 0.05 max &0.15 max 0.05 max 0.20 max 0.05 max 0.15 max

LM-6 10.0-13.0 0.6 max 0.1 max 0.5 max 0.1 max 0.1 max 0.1 max 0.05max 0.20 max 0.1 max

LM-9 10.0-13.0 0.6 max 0.1max 0.3-0.7 0.2-0.6 0.1max 0.1max 0.05 max 0.2 max 0.10 max

LM-16 4.5-5.5 0.6 max 1.0-1.5 0.5 max 0.4-0.6 0.25 max 0.1 max 0.05 max 0.2 max 0.10 max

AC8A 11.0-13.0 0.8 max 0.8-1.3 0.15 max 0.80-1.30 0.8-1.5 0.15 max 0.05 max 0.20 max 0.05 max 0.10 max

AC8B 8.5-10.5 1.0 max 2.0-4.0 0.50 max 0.60-1.50 0.1-1.0 0.50 max 0.10 max 0.20 max 0.10 max 0.10 max

AC8C 8.5-10.5 1.0 max 2.0-4.0 0.50 max 0.60-1.50 0.50 max 0.50 max 0.10 max 0.20 max 0.10 max 0.10 max

AC9A 22.0-24.0 0.80 max 0.5-1.6 0.50 max 0.60-1.50 0.5-1.5 0.20 max 0.10 max 0.20 max 0.10 max 0.10 max

AC9B 18.0-20.0 0.80 max 0.5-1.6 0.50 max 0.60-1.50 0.5-1.5 0.20 max 0.10 max 0.20 max 0.10 max 0.10 max

ADC-1 11.0-13.0 1.30 max 1.0 max 0.30 max 0.30 max 0.50 max 0.50 max 0.10 max

ADC-3 9.0-10.0 1.30 max 0.60 max 0.30 max 0.4-0.6 0.5 max 0.5 max 0.1 max

ADC-5 0.30 max 1.8 max 0.20 max 0.30 max 4.1-8.5 0.1 max 0.1 max 0.1 max

ADC-6 1.0 max 0.80 max 0.10 max 0.4-0.6 2.5-4.0 0.1 max 0.4 max 0.1 max

ADC-10 7.5-9.5 1.3 max 2.0-4.0 0.5 max 0.3 max 0.5 max 1.0 max 0.2 max

ADC-10Z 7.5-9.5 1.30 max 2.0-4.0 0.5 max 0.3 max 0.5 max 3.0 max 0.2 max

ADC-12 9.6-12.0 1.30 max 1.5-3.5 0.5 max 0.3 max 0.5 max 1.0 max 0.2 max

ADC-14 16.0-18.0 1.30 max 4.0-5.0 0.5 max 0.45-0.65 0.3 max 1.5 max 0.3 max

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 CONTENTS

INTRODUCTION
GRADES OF AL INGOT
TECHNICAL SPECIFICATION OF ALUMINIUM ALLOY INGOT
ALUMINIUM ALLOY INGOT CHEMICAL COMPOSITION
USES AND APPLICATION
FIELDS OF APPLICATION:
B.I.S. SPECIFICATION
PROCESS FLOW CHART
(A) FOR ALUMINIUM INGOT FROM ALUMINIUM DROSS
(B) FORALUMINIUM INGOT FROM SCRAP
MANUFACTURING PROCESS
(A) ALUMINIUM INGOT FROM ALUMINIUM DROSS
(B) ALUMINIUM INGOT FROM ALUMINIUM SCRAP
(1) SCRAP PRETREATMENT –
METHODS OF PRETREATMENT
(A) COMMINUTION
(B) CLEANING
METHODS OF CLEANING
(I) MECHANICAL CLEANING –
(II) PYROMETALLURGICAL CLEANING -
(III) HYDROMETALLURGICAL CLEANING -
(C) SORTING
METHODS OF SORTING
(I) MAGNETIC SEPARATION
(II) AIR SEPARATOR
(III) EDDY CURRENT
(IV) DENSE MEDIA SEPARATOR
(V) HAND SORTING
(VI) HOT CRUSH
(VII) INNOVATIVE SORTING SOLUTIONS
(D) DECOATING
(2) CHARGING AND FLUXING
CLASSIFICATION OF FLUXES FOR MELTING ALUMINUM
(A) COVER FLUXES

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(B) DROSSING FLUXES
(C) CLEANING FLUXES
(D) WALL CLEANING FLUXES
(E) DEGASSING FLUXES
(F) GRAIN REFINERS
(G) SILICON MODIFIERS
(H) DEMAGGING FLUXES
(3) MELTING PROCESS
TEMPERATURE CONTROL
SKIMMING
ALLOYING
(4) DEGASSING (MELT TREATMENT)
(5) INGOT CASTING
(6) QUALITY CONTROL
(5) EMISSIONS AND CONTROLS
(A) SCRAP PRETREATMENT EMISSIONS
(B) SMELTING/REFINING EMISSIONS
(6) SHIPMENT
MARKET OVERVIEW
THE OBJECTIVE OF THE RESEARCH IS
GLOBAL ALUMINIUM INDUSTRY
GLOBAL PRODUCTION
ALUMINIUM PRODUCING COUNTRIES
GLOBAL CONSUMPTION
THE FOLLOWING ARE THE VARIOUS APPLICATIONS AREAS OF ALUMINIUM.
TOP GLOBAL COMPANIES IN PRIMARY ALUMINIUM
INDIAN ALUMINIUM INDUSTRY
HISTORY
FEATURES OF INDIAN ALUMINIUM INDUSTRY
PRIMARY ALUMINIUM PRODUCTION
CONSUMPTION
ANALYSIS OF INDIAN PRIMARY ALUMINIUM MARKET
TYPE OF MARKET
PROFILE OF KEY PLAYERS
NATIONAL ALUMINIUM COMPANY (NALCO)
HINDUSTAN ALUMINIUM COMPANY (HINDALCO)
STERLITE INDUSTRIES LTD (VEDANTA)

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REASONS FOR INDIAN ALUMINIUM INDUSTRY BEING AN OLIGOPOLY
(BARRIERS TO ENTRY)
ECONOMIES OF SCALE.
HUGE CAPITAL INVESTMENTS.
TIME TO SETUP.
CONTROL OVER THE BAUXITE MINES.
SCARCITY OF POWER.
GOVERNMENT FACTOR.
LAND.
GEOGRAPHICAL FACTORS.
PORTERS COMPETITIVE FRAMEWORK
1. THREAT FROM SUBSTITUTE PRODUCT.
2. THREAT OF ENTRY.
3. BARGAINING POWER OF BUYERS.
4. BARGAINING POWER OF SUPPLIERS.
5. INTENSITY OF RIVALRY AMONG EXISTING COMPETITORS.
PRICING OF PRIMARY ALUMINIUM
EXPORT DATA OF ALUMINIUM INGOTS
IMPORT DATA OF ALUMINIUM INGOTS
FUTURE OF ALUMINIUM INDUSTRY IN INDIA
ALUMINIUM PRODUCING COUNTRIES
GLOBAL CONSUMPTION
THE FOLLOWING ARE THE VARIOUS APPLICATIONS AREAS OF ALUMINIUM.
TOP GLOBAL COMPANIES IN PRIMARY ALUMINIUM
INDIAN ALUMINIUM INDUSTRY
CHARACTERISTICS AND FEATURES OF INDIAN ALUMINIUM INDUSTRY
INDIA’S POSITION IN WORLD RANKING
PRIMARY ALUMINIUM PRODUCTION
CONSUMPTION
TRANSPORTATION SECTOR
BUILDING AND CONSTRUCTION SECTOR
PACKAGING SECTOR
ENGINEERING EQUIPMENT, ELECTRONICS AND CABLES, AND OTHER
SECTORS
FORECASTING
TABLE 2: FORECASTING TABLE
CONCLUSION
INDIAN ALUMINIUM OVERVIEW

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ALUMINIUM INDUSTRY IN INDIA
DOMESTIC DEMAND
DOMESTIC SUPPLY
INDUSTRIES DEMAND
IMPOSITION OF EXPORT DUTY ON ALUMINA
REDUCING IMPORT DUTY ON ALUMINIUM FLUORIDE
INCREASING OF EXPORT DUTY ON BAUXITE
INCREASE IN BASIC CUSTOMS DUTY ON ALUMINIUM PRODUCTS
FROM 5% TO 10%
CUSTOMS DUTY ON ALUMINIUM SCRAP AT PAR WITH THE DUTY ON THE
ETAL PRODUCTS
INCLUSION OF ALUMINIUM INGOTS UNDER INTEREST SUBVENTION SCHEME
OUR ASSESSMENT
GLOBAL ALUMINIUM PRICES TO PLUNGE FURTHER IN 2016
LOW REALISATION WILL STRESS FINANCIALS
GROWTH IN EXPORTS WILL ALSO MODERATE
INDUSTRIES DEMAND AND KEY BUDGET PROPOSALS - UNION
BUDGET 2016-17
ESTIMATED IMPACT
DATA TABLES
A. DEMAND SUPPLY - INDIA
B. DEMAND SUPPLY – GLOBAL
SUPPLIERS OF ALUMINIUM ALLOY INGOT
SUPPLIERS OF RAW MATERIALS
SUPPLIERS OF ALUMINIUM DROSS
SUPPLIERS OF ALUMINIUM SCRAP
SUPPLIERS OF SILICON POWDER
SUPPLIERS OF IRON POWDER
SUPPLIERS OF COPPER POWDER
SUPPLIERS OF MAGNESIUM POWDER
SUPPLIERS OF NICKEL POWDER
SUPPLIERS OF ZINC POWDER
SUPPLIERS OF LEAD POWDER
SUPPLIERS OF TIN POWDER
SUPPLIERS OF PACKING MATERIAL
SUPPLIERS OF PICKLING CHEMICALS
SUPPLIERS OF PLANT AND MACHINERY
SUPPLIERS OF CRUCIBLE FURNACE

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SUPPLIERS OF INGOT CASTING MACHINE
SUPPLIERS OF SILICON CARBIDE CRUCIBLE
SUPPLIERS OF ALUMINIUM RECYCLING PLANT
SUPPLIERS OF SHEREDDER
SUPPLIERS OF DE-COATER
SUPPLIERS OF MAGENETIC SEPARATOR
SUPPLIERS OF CASTING LADDLE
SUPPLIERS OF SPECROMETER
SUPPLIERS OF POROSITY TESTING MACHINE
SUPPLIERS OF EOT CRANE
SUPPLIERS OF DG SETS
SUPPLIERS OF COOLING TOWER
SUPPLIERS OF EFFULENT TREATMENT PLANT (ETP PLANT)
SUPPLIERS OF AIR POLLUTION CONTROL EQUIPMENTS
SUPPLIERS OF AIR CONDITIONING EQUIPMENTS
SUPPLIERS OF AIR COMPRESSORS
SUPPLIERS OF PLATFORM WEIGHING MACHINE
SUPPLIERS OF MATERIAL HANDLING EQUIPMENTS
SUPPLIERS OF NDT INSPECTION EQUIPMENT
SUPPLIERS OF FIRE FIGHTING EQUIPMENTS
SUPPLIERS OF ELECTRICAL MEASURING INSTRUMENTS
SUPPLIERS OF SUBMERSIBLE WATER PUMP

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APPENDIX – A:

01. PLANT ECONOMICS A-1

02. LAND & BUILDING A-2
03. PLANT AND MACHINERY A-3
04. OTHER FIXED ASSESTS A-4
05. FIXED CAPITAL A-5
06. RAW MATERIAL A-6
07. SALARY AND WAGES A-7
08. UTILITIES AND OVERHEADS A-8
09. TOTAL WORKING CAPITAL A-9
10. TOTAL CAPITAL INVESTMENT A-10
11. COST OF PRODUCTION A-11
12. TURN OVER/ANNUM A-12
13. BREAK EVEN POINT A-13
14. RESOURCES FOR FINANCE A-14
15. INSTALMENT PAYABLE IN 5 YEARS A-15
16. DEPRECIATION CHART FOR 5 YEARS A-16
17. PROFIT ANALYSIS FOR 5 YEARS A-17
18. PROJECTED BALANCE SHEET FOR (5 YEARS) A-18

COST ESTIMATION

Plant Capacity 6 MT/Day

Land & Building (10,000 sq.mt.) Rs. 6.34 Cr
Plant & Machinery Rs. 2.93 Cr
Working Capital for 2 Months Rs. 3.40 Cr
Total Capital Investment Rs. 13.10 Cr
Rate of Return 21%
Break Even Point 62%

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