This morning in metals news, Novelis Inc. reported its quarterly financial results, steel trade in China slows amid coronavirus fears and India’s carbon emissions are projected to soar over the next 30 years.
Novelis reports net income up 37%
For Q3 of fiscal year 2020, Novelis reported net income of $107 million, which marked a 37% year-over-year increase.
Adjusted EBITDA reached $343 million, up 7% on a year-over-year basis.
However, in part due to lower LME aluminum prices and local market premiums, net sales fell 10% to $2.7 billion, Novelis reported.
“Novelis continues to perform very well both operationally and financially, delivering another set of strong results in the third quarter,” President and CEO Steve Fisher said. “At the same time, we have made excellent progress advancing our major organic expansion projects in the U.S., China and Brazil, allowing us to continue to grow with our customers and better compete against steel and other materials.”
Steel trade slows in China
The coronavirus death toll continues to rise in China, with over 1,000 reported deaths as of early this week, according to media reports.
As Chinese authorities aim to control the coronavirus outbreak, its impact has been felt in the metals sector.
According to Reuters, steel demand has been dampened, seen by the fact that Chinese traders are not making customary post-Lunar New Year holiday purchases.
Indian carbon emissions set to boom
India, the world’s No. 2 steel producer, will see a boom in carbon emissions over the next 30 years, according to a Bloomberg report.
Per the report, India’s carbon emissions are set to triple by 2050 as a result of steel demand in the country.
Recently, Sohrab Darabshaw delved into India’s annual budget, which could see to ample opportunity for the steel sector via a wide array of public works projects.