Scepter to supply Novelis with 200,000 mt of low-carbon, scrap-based aluminum slab

Aluminum recycler and trader Scepter said Sept. 15 it had signed a multiyear supply agreement with rolled products major Novelis to supply more than 200,000 mt of low-carbon rolling slab with up to 95% recycled content.

Novelis will roll and finish the ingot for its customers that manufacture aluminum beverage cans and food containers in the US, Scepter said.

Scepter produces a wide range of recycled products at facilities in the United States, Canada and Europe. Since 1991, Scepter has produced rolling ingot from recycled scrap at its Waverly, Tennessee, plant.

The rolling slab will be produced at Waverly, representing growth in its slab business, and supplied to Novelis' rolling mill in Oswego, New York, and its Logan Aluminum joint venture mill in Russellville, Kentucky, Scepter CEO Garney Scott said in an interview with Platts.

"We're using very little prime in our current mix at Waverly," Scott said.

The types of scrap used and alloys produced will vary, and could be extended to other products such as automotive sheet where there is also pressure to meet carbon reduction goals.

"It builds on our existing business we've had with Novelis and certainly secures more for the future," he added.

Demand for slab has been growing because of rising premiums on primary aluminum, difficulties in sourcing and shipping scrap, and limited hot-mill capacity in the US. US imports of sheet ingot/rolling slab were up 92.7% year to date through July, with most of that coming from Canada, Census Bureau data show. Imports from Canada were up by 440,740 mt, or 88%, YTD through July.

Push for lower-carbon cansheet

This agreement will result in an estimated carbon reduction of 1.2 million mt compared with the use of prime-based sheet ingot, supporting both companies' sustainability objectives, a company statement said.

Aluminum market sources said can makers and beverage companies have been pushing for lower-carbon, lower-priced cansheet. Using 100% post-consumer and manufacturing scrap such as class scrap from can-making should get closer to zero metric tons of CO2 equivalent emissions per metric ton of aluminum, compared with low-carbon primary aluminum from hydro-powered smelters at around 4 mt of CO2 equivalent emissions per mt of aluminum for Scopes 1-2 or around 8 mt for Scopes 1-3. The 1.2 million mt reduction equates to a reduction of around 6 mt of CO2 emissions per 1 mt of aluminum, Scott said.

"We were green before green was trendy," added Scepter executive Guy Riviere.

"Scepter is committed to use more scrap, reduce emissions and contribute to the overall sustainability of aluminum," Scott said in the statement. "We are excited to partner with Novelis to continue these efforts. Our unique technology and capabilities will produce high-quality ingot that meets bold sustainable objectives set by Novelis."

Reducing carbon footprints

Novelis in April announced a goal to become net carbon neutral by 2050 or sooner and reduce its carbon footprint 30% by 2026. Novelis currently uses 61% of recycled inputs across all of its products globally and has increased recycled content by 96% from its baseline averages in fiscal years 2007-2009, according to its website and company officials.

Platts has expanded its offerings in the low-carbon aluminum and steel space to include its European Low-Carbon Aluminum Premium and Zero-Carbon Aluminum Premium assessments and three additional US carbon-accounted aluminum spreads references launched Aug. 13 that allow users to compare low-carbon feedstocks with traditional higher-carbon inputs.

Infinitely recyclable

Scepter noted that aluminum is infinitely recyclable and is unique in that it can be directed right back into the same high-value applications rather than being down-cycled. The aluminum recycling process requires just 5% of the energy used to produce primary aluminum and emits 5% of the associated greenhouse gases. This partnership ensures aluminum scrap can be recycled into new, like products using lesser amounts of primary aluminum.

"Novelis' purpose is shaping a sustainable world together, which recognizes the importance of working with partners throughout the industry to advance sustainability for our customers," said Tom Boney, executive vice president and president, Novelis North America. "We're proud to continue working with Scepter to advance aluminum as the most sustainable material choice."