American Specialty Alloys said it plans to build a $1.2 billion aluminum mill in the southeastern United States to tap into rising demand from the automotive industry.
The company said the mill would supply over 600,000 tons of flat-rolled aluminum to the automotive industry annually, according to Reuters.
“The move to use less steel, substituting lighter aluminum by automakers will create unprecedented demand on current manufacturers of these grades of aluminum,” founder and Chief Executive Roger Boggs said in a statement.
Boggs is making the switch to aluminum after almost a quarter of a century working in engineering and technology development for major steel producers including AK Steel , Severstal’s North American and ThyssenKrupp’s U.S. steel business.
On Monday, November 17, the day’s biggest mover was the cash price of primary aluminum, which saw a 2.1% decline on the LME to $2,020 per metric ton. The 3-month price of aluminum saw a 1.9% decline on the LME to $2,017 per metric ton. The cash price of primary Indian aluminum fell 0.4% to INR 125.65 ($2.05) per kilogram.
Chinese aluminum prices were flat for the day. The Chinese aluminum cash price showed little movement yesterday at CNY 13,670 ($2,226) per metric ton. Chinese aluminum scrap stayed flat at around CNY 13,000 ($2,117) per metric ton. The price of Chinese aluminum billet held steady at CNY 13,900 ($2,263) per metric ton. For the fifth day in a row, the price of Chinese aluminum bar remained essentially flat at CNY 14,200 ($2,312) per metric ton.