Novelis's Madden calls for return to 1990s supply discipline in aluminium

Novelis’ chief supply chain officer Nick Madden has called on the aluminium industry to take decisive action to restore the market’s supply balance, in the same way as governments did 20 years ago by signing a memorandum of understanding (MoU) to make simultaneous cuts in aluminium production.

“The real issue is that the world is grossly oversupplied with primary aluminium and this is reflected in the current LME price,” Madden said in a recent blog posting, in which he reiterated his view that the proposed changes to London Metal Exchange warehousing rules do not go far enough in addressing the market’s ails. “Perhaps the industry needs to reflect on the success of the memorandum of understanding between producers 20 years ago and take bold moves today to restore the market balance now and not rely on external factors and wishful thinking to save...

Published

Jethro Wookey

October 01, 2013

11:01 GMT

London