Reuters reported that weaker Chinese demand and overcapacity in the aluminum can market will force Novelis Corporation to find new markets outside of Asia for the aluminum sheet produced at its newly expanded South Korean rolling mills.
Phil Martens, CEO of Novelis, said “Challenging conditions in China, the world’s second largest economy, have forced Novelis to put investment in Asia on hold for the foreseeable future.” Martens made the statement on an analysts’ conference call.
On Thursday, June 5, the day’s biggest mover was the Indian aluminum cash price, which saw a 1.5 percent decline to INR 109.05 ($1.84) per kilogram. The aluminum 3-month price weakened by 0.5 percent on the LME, settling at $1,821 per metric ton. On the LME, the cash price of primary aluminum declined 0.3 percent to $1,796 per metric ton.
Chinese aluminum prices were mixed for the day. The cash price of Chinese aluminum saw a 1.0 percent decline to CNY 13,180 ($2,109) per metric ton. The price of Chinese aluminum scrap was unchanged at CNY 12,250 ($1,960) per metric ton. For the fifth consecutive day, the price of Chinese aluminum billet held flat at CNY 13,590 ($2,174) per metric ton. The price of Chinese aluminum bar saw essentially no change for the fifth day in a row, remaining around CNY 14,200 ($2,272) per metric ton.