Novelis has announced plans to shutter its Ouro Preto, Minas Gerais, Brazil, primary aluminum smelter by the end of 2014. Novelis says it is looking to focus its efforts in Brazil on its aluminum rolling and recycling operations.
“The decision to end operations at Ouro Preto is consistent with our global strategy to build our business around sustainability – transforming from a linear business model to a closed-loop business model focused on recycled content,” Tadeu Nardocci, senior vice president, Novelis and president, Novelis South America told Recycling Today. “In addition, the closure is driven by systemic issues affecting the entire primary aluminum industry in Brazil impacting cost of operations and overall competitiveness.”
The Ouro Preto facility produces 18,000 metric tons of aluminum billets per year, which are then sold to third-party extruders.
The aluminum cash price saw the biggest upwards shift for the day, rising 0.9% on the LME to close at $1,971 per metric ton on Wednesday, October 22. On the LME, the 3-month price of aluminum rose 0.6% to $1,980 per metric ton. The cash price of primary Indian aluminum inched up 0.5% to INR 122.50 ($2.00) per kilogram.
Chinese aluminum prices closed flat for the day. The price of Chinese aluminum scrap was unchanged at CNY 12,250 ($1,995) per metric ton. The price of Chinese aluminum billet continues hovering around CNY 13,590 ($2,213) per metric ton for the fifth day in a row. For the fifth consecutive day, the price of Chinese aluminum bar held flat at CNY 14,200 ($2,312) per metric ton. For the fifth day in a row, the cash price of Chinese aluminum remained essentially flat at CNY 13,960 ($2,273) per metric ton.