Novelis projects global aluminum demand to remain on a growth trajectory that will not be negatively impacted long-term by the coronavirus pandemic, CEO Steve Fisher said Feb. 3.
"The many favorable benefits associated with using aluminum across product categories, not the least of which is its sustainable attributes as a lightweight, infinitely recyclable material, continue to drive long-term global demand for aluminum flat-rolled products by approximately 5%," Fisher said during a call with analysts in reference to Novelis' one-year outlook
The automotive end market should fuel the most significant year-over-year increase for aluminum demand in 2021 as manufacturers return to normal production and customers change their preferences following the pandemic, according to Novelis' presentation during the call.
"A heightened OEM focus on sustainability and adoption of electric vehicles by consumers are supporting increased demand for aluminum," Fisher said. "The recent research we've seen suggests that the pandemic has triggered the desire for safer personal mobility, and the shift toward vehicle types which use a higher share of aluminum such as SUVs, trucks and electric vehicles have proven resilient."
Bullish views on automotive aluminum demand are further bolstered by an expected US review of CAFE fuel efficiency standards and General Motors' recent announcement to transition its entire fleet to electric vehicles by 2035, Fisher added.
Fisher said aluminum demand for beverage cans, which made up the largest portion of Novelis' 2020 revenue mix, continued to "show its resiliency to economic cycles," especially in North and South America.
"We are seeing the benefits from higher at-home consumption that favors a package mix shift towards increased demand for sustainable aluminum cans," the executive said.
Novelis shipped 933,000 mt of flat-rolled aluminum products in its fiscal third quarter ending Dec. 31, 2020, climbing 17% year over year.
The Atlanta-based aluminum roller reported a net income of $177 million on sales of $3.24 billion in its fiscal Q3, a year-over-year increase from a $107 million profit on $2.72 billion in revenue.
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