Novelis push for scrap may disrupt mart: chief

Feb 11, 2014 | 04:02 PM | Nathan Laliberte

Tags  Novelis, Philip Martens, Ford, London Metal Exchange, LME, automotive sheet, warehousing, aluminum aluminum scrap

NEW YORK — With demand for automotive sheet growing exponentially, several aluminum producers have expressed concern that Novelis Inc., which is pushing to boost scrap utilization rates across all product lines, has been overpaying for scrap and effectively skewing the entire aluminum scrap market.

"We might be. I am absolutely comfortable with it," Novelis chairman and chief executive officer Philip Martens said in an interview with AMM.

Novelis has been "extremely transparent" about its drive toward scrap, he said. "By the end of the decade, every product we have will have 80-percent recycled content in it. We put in the recycling assets globally and we go out and we buy scrap."

Moreover, Martens said he is aware that Novelis’ recent push toward scrap has been disruptive to the market. "A lot of people were critical of me personally and the company when we said we were going to do 80-percent recycled content," he said, noting that several industry insiders didn’t take the company’s assertion seriously. "We’re deadly serious. ... We are going to do it—and we are doing it—and it is disruptive to the market, and we know that."....





Latest Pricing Trends

Poll

Is severe weather affecting your business?

Yes
No


View previous results