Novelis Inc., the largest maker of flat-rolled aluminum products used in everything from automobiles to beverage cans and airplanes, said demand for the metal heading into 2024 is stronger than it expected three to four months ago.
(Bloomberg) — Novelis Inc., the largest maker of flat-rolled aluminum products used in everything from automobiles to beverage cans and airplanes, said demand for the metal heading into 2024 is stronger than it expected three to four months ago.
While aluminum consumers are running down their stockpiles — indicating demand has slowed from the same time a year ago — the company now expects a “soft landing,” Novelis Chief Executive Officer Steve Fisher said in an interview. The US economy has been more resilient than anticipated and inflation has moderated, suggesting the Federal Reserve may halt rate hikes, he said.
“As we look at 2024, we believe there will be a bit of a soft landing,” Fisher said. “You see the economy continuing to be very robust in the US and inflation is starting to settle.”
US economic growth has continued at a steady pace this year, despite worries that rising borrowing costs would slow everything from construction to vehicle purchases. To be sure, Novelis remains cautious that further unexpected monetary tightening could dent demand, but for now the company sees “a strong recovery and we’re feeling good,” the CEO said.
Aluminum prices are down more than 6% this year as China’s slow recovery from pandemic-related lockdowns hit global demand. So-called premiums, the price charged to ship the metal to the US Midwest, are up more than 5% this year, indicating demand in the North American region may be slightly stronger than other areas of the world.
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