Aluminum Mill Fire Causes Immediate Market Disruption

(Stock Picture, not from the Novelis plant or fire)

Last week, a fire shut down Novelis’ aluminum rolling mill in Oswego, NY — one of North America’s most important producers of flat-rolled sheet for the automotive, beverage can, and specialty markets. While no injuries were reported, the mill remains offline as damage assessments continue.

The disruption was felt immediately in the domestic aluminum market. With this Novelis location temporarily out of the equation, demand for feedstock like used beverage cans (UBCs) fell while supply levels stayed steady. That imbalance pushed formula positions for UBCs down about 2% overnight — a sharp reminder of how quickly pricing shifts when a major mill suddenly stops pulling material.

Beyond pricing, the outage ripples across the wider supply chain. Automakers face tighter sheet availability, beverage producers risk squeezed can stock supply, and recyclers with contracts tied to rolling demand must quickly adjust their flows. Local contractors and service providers in Oswego County are also feeling the pause in activity, showing how one plant’s shutdown reverberates far beyond its walls.

In times like these, stability in trading partners becomes critical. Labrador Recycling is positioned to reroute aluminum loads to alternate mills, maintain steady market positions, and leverage its logistics and storage capacity to keep material moving even in the face of emergencies or disasters. Having a partner who can adapt ensures that supply chains don’t grind to a halt when unexpected events hit.

Aluminum market insights and supply chain resilience brought to you by Wes Foster, Sr. Business Development Manager.