Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Alliance Metals is looking to bring another 55,000mt of secondary aluminum smelting online, pending approval from the local zoning board in Arizona.  


The La Paz County, Arizona, smelting operation will produce semi-finished grades such as A380, A319, A356, as well as grades like 6063 and 5052. The raw material list includes a standard form for aluminium scrap grades, such as Zorba, Tense, 356 Wheels, Taint/Tabor, and MLC.


The $30mn facility, for which permitting has been approved, will reduce operating costs and minimize environmental impact. A Dec 5 meeting with the zoning board will determine whether the land that Alliance purchased from a cotton farmer in 2018 can be rezoned to accommodate the smelting operation. There has been opposition from local residents concerned by its environmental impact.


There are limited options for aluminium scrap facilities in west Texas and New Mexico, but Arizona has become an ideal location for scrap dealers. There are six smelters owned by four companies in two of those states, with four locations concentrated in the eastern half of Texas and two in Arizona.

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