Novelis Reports 3Q Shipment Growth Amid Rising Demand for Aluminum Products

Novelis

Novelis, a leading U.S.-based aluminum roller, reported a 1.3% increase in third-quarter rolled product shipments, driven by growing demand in the beverage can, automotive, and aerospace sectors. The company anticipates further gains as these markets continue to expand.

Quarterly Shipment Performance

During the third quarter, Novelis shipped 945,000 metric tonnes (t) of rolled aluminum products, up from 933,000t in the same quarter of 2022. Regionally, shipments varied:

• North America: Increased to 395,000t from 390,000t.
• Asia: Rose to 159,000t from 155,000t.
• South America: Jumped by 16% to 158,000t.
• Europe: Declined to 233,000t from 252,000t, largely due to operational disruptions at the company’s Sierre, Switzerland, plant caused by flooding in June.

The Sierre facility resumed partial operations in September, but production is expected to remain below full capacity for the remainder of the year.

Expansion and Market Growth Outlook

Despite the European setback, Novelis remains committed to its growth strategy. The company is on track to commission its new rolling and recycling plant in Bay Minette, Alabama, in the second half of 2026. Once operational, the facility will have an annual capacity of 600,000 tonnes, divided as follows:

• 420,000 t/year for beverage can packaging.
• 180,000 t/year for automotive and specialty aluminum production.

Market trends support Novelis' growth expectations:

• Beverage Packaging: Demand is projected to grow at a 4% annual rate due to increased consumer preference for canned beverages.
• Automotive: Demand is forecast to rise at a 6% annual rate, fueled by the growing popularity of trucks and SUVs in North America.

Financial Performance

Despite the rise in shipments, Novelis’ third-quarter profit declined to $129 million, compared to $157 million in the same period last year. The decrease reflects ongoing challenges in European operations and increased operational costs.