SDI aluminum hot-rolled coil for automotive sheet eases US supply crunch

SDI aluminum

SDI aluminum hot-rolled coil for automotive sheet is arriving just as US automakers face a severe supply crunch. The steelmaker produced and qualified aluminum hot band for automotive use in the third quarter, ahead of its original schedule. This SDI aluminum hot-rolled coil for automotive sheet enters the market just after a major fire shut Novelis’ Oswego hot-rolling mill until early 2026. As a result, OEMs struggling to secure body sheet now see SDI’s Columbus, Mississippi mill as a timely alternative source.

Fortuitous ramp-up amid Novelis outage and tariff risks

The Novelis outage has tightened the US automotive sheet market and forced contingency plans that carry heavy costs. The company can import hot band from Europe, but those volumes face 50pc US import tariffs that squeeze margins. Against this backdrop, SDI aluminum hot-rolled coil for automotive sheet offers domestic hot band that avoids tariff penalties. Market participants have also floated the option of Novelis sourcing hot band from US competitors, although the firm has not confirmed this path.

Meanwhile, SDI emphasized that confidentiality agreements limit what it can disclose about specific counterparties. Even so, management highlighted that Aluminum Dynamics has reacted to customer needs “with surprising speed” amid recent supply shocks. The timing of SDI’s ramp-up allows it to backstop the market while accelerating qualification in demanding automotive programs. Therefore, the SDI aluminum hot-rolled coil for automotive sheet story is as much about relationship-building as it is about volume.

Columbus ramps capacity, moves toward higher-margin mix

SDI’s Columbus rolling mill is designed for 650,000 t/yr of flat-rolled aluminum once fully ramped. The company plans to allocate 45pc of output to can sheet, 35pc to automotive and 20pc to industrial markets. This mix positions the new platform squarely in higher-margin end uses where security of supply is critical. Early qualifications in 5754 automotive alloy hot band should help SDI move faster into premium automotive body and structural sheet.

At the same time, SDI is commissioning three of four casthouses producing 3XXX, 5XXX and 6XXX series ingots. It already supplies 3003, 3104 and 5052 flat-rolled products for can and industrial markets, broadening its commercial base. The two tandem mills will start in phases, with the first due in November and the second targeted for early 2026. A new continuous annealing solution heat-treatment (CASH) line is expected in the same window, enabling full automotive-quality finishing.

Operating losses in the aluminum segment widened to $56.5mn in the quarter as ramp-up costs hit the P&L. However, segment revenue still grew by 6.2pc to $71mn as volumes and product scope increased. Management expects that faster certifications and a richer product mix will pull the business toward profitability from 2026 onward. For automakers and Tier 1s, the key takeaway is that US rolling capacity is arriving just when the market needs redundancy.

The Metalnomist Commentary

SDI’s move into aluminum comes at an unusually favorable point in the automotive sheet cycle. With Novelis constrained and tariffs complicating import options, qualified domestic hot band carries strategic value beyond price alone. If Columbus hits its product-mix and ramp targets, it could permanently reshape competitive dynamics in North American auto sheet.