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Following are comments on London Metal Exchange rules for delivering industrial metals from stockpiles and on aluminum demand by Philip Martens, chief executive officer of Novelis Inc.
Martens spoke yesterday in an interview in Abu Dhabi. Novelis, an Atlanta-based unit of Hindalco Industries Ltd. (HNDL), recycles about 40 billion aluminum beverage cans a year, according to its website.
On LME rules:
“The offloading rate that’s been introduced in April has a small incremental benefit. There has to be some aggressive offloading rate that has to be introduced.
“It’s hard to consider legal action. The only action we really can take is to be vocal about what we see.
“You have that amount of inventory stockpiled, tied up in financing arrangements, and then you have a backlog in demand that really can use it. It’s just a misbalance right now.”
“If you look at it globally, the U.S. probably has flat demand except for the automotive sector. Europe is flat except for the automotive sector, and there is an increase in beverage- can usage for aluminum. The biggest demand, probably, that we have is the broader Asian market.”
To contact the reporters on this story: Agnieszka Troszkiewicz in London at firstname.lastname@example.org; Mahmoud Kassem in Abu Dhabi at email@example.com
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