CHICAGO Novelis Inc. has raised prices for its automotive sheet products in North America, the company said April 23, also forecasting an increase in metal premiums.
The fabrication price for 5182- and 5754-series automotive alloys have been increased by 13 cents per pound and 6000-series automotive alloys by 9 cents per pound effective for all new orders on or after April 23, the Atlanta-based aluminum company said.
Current supply agreements will be honored through the end of the contract period, the company said.
"The increase reflects the prevailing tight supply situation and strong demand," Tom Walpole, president of Novelis North America, said in a statement. "Given the market dynamics, we also expect to see an upward trend in metal premiums and production costs."
Novelis is "on track" to boost automotive product capacity by 200,000 tonnes per year at its facility in Oswego, N.Y., he said, adding that production should come online in 2014.
"We remain committed to being the aluminum sheet leader in the automotive industry," Walpole said.
Novelis is investing $200 million to expand its rolling operations in Oswego (amm.com, Oct. 31).