Novelis Inc., a subsidiary of Aditya Birla Group‘s Hindalco Industries, plans to grow its auto and specialty aluminum businesses to a quarter each of its overall shipment size, closing down its foil and other businesses.
Auto and specialty aluminum are currently 9% and 12%, respectively, of their overall shipments. The foil and other businesses are second largest segment of its shipments (about 17%) after its beverage cans business (62%).
By 2020, the company’s beverage cans’ shipment share will shrink to 50%, while auto and specialty will grow to 25%, according to the company. Novelis is exiting the foil business after shutting down a plant that primarily produces foil in Brazil at the end of last year.
The week’s biggest mover on the weekly Automotive MMI® was the price of Korean 5052 coil premium over 1050 sheet, which saw a 4.3% decline to KRW 3,986 ($3.59) per kilogram. This week marked the third in a row of declining prices for the metal. The cash price of primary copper rose 0.8% on the LME to $5,690 per metric ton after falling 1.1% during the previous week. The price of Chinese lead rose 0.8% to CNY 12,650 ($2,023) per metric ton after falling 0.8% during the previous week. The 3-month price of copper rose 0.6% on the LME to $5,680 per metric ton after falling 0.7% during the previous week.
The price of US HDG fell 1.3% over the past week to $685.00 per short ton. This was the fourth week in a row of declining prices.
The price of US platinum bar fell 2.2% over the past week to $1,165 per ounce. This was the fourth week in a row of declining prices. The price of US palladium bar rose 1.6% to $778.00 per ounce after falling 3.0% during the previous week.
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The Automotive MMI® collects and weights 7 metal price points used in automotive production to provide a unique view into automotive metal trends. For more information on the Automotive MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.