Novelis Announces $205M Investment; Aluminum Cash Price Sees Price Drop

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Novelis announced today that “it will invest an additional $205 million to further expand its global manufacturing operations serving the rapidly growing automotive market. The company will build new finishing lines at its plants in Oswego and Nachterstedt, Germany, dedicated to the production of aluminum automotive sheet,” according to the company’s press release.

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“The two new lines will each have a capacity of 120,000 metric tons per year. The latest expansions are in response to the escalating global demand from automakers for aluminum sheet, which the company expects to grow by more than 30 percent per year through the end of the decade. When the new lines are commissioned in late 2015, Novelis’ global automotive sheet capacity will reach approximately 900,000 tons per year, a three-fold increase from just a year ago.”

In metal price news for aluminum…

On Monday, December 16, the day’s biggest mover was the cash price of primary aluminum, which saw a 0.5 percent decline on the LME to $1,750 per metric ton. On the LME, the 3-month price of aluminum fell 0.5 percent to $1,796 per metric ton. The cash price of primary Indian aluminum gained 0.3 percent to finish.

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Chinese aluminum prices were flat for the day. The price of Chinese aluminum scrap held steady. The price of Chinese aluminum billet was unchanged. For the fifth consecutive day, the price of Chinese aluminum bar held flat. The Chinese aluminum cash price saw little price change yesterday.