Canada relies on imported aluminium as its manufacturing PMI drops; scrap imports surge by 57% in Aug’23

Canada recorded a substantial rise in aluminium imports during August 2023, indicating a notable shift in the metal market. The total volume of aluminium imports during the said month stood at 894,952 tonnes, flaunting a growth of 21.58 per cent from 736,089 tonnes in July. On a year-on-year calculation, the imports registered a rise of 19 per cent compared to 753,554 tonnes.

Brazil, Australia, Guinea, and the United States were the top four suppliers of aluminium to Canada. Brazil led the way by exporting 659,527 tonnes of aluminium products, followed by Australia 88,255 tonnes, Guinea 58,996 tonnes, and the United States 55,539 tonnes.

It is to be noted here that Canada’s manufacturing PMI dropped to 48, marking the fourth consecutive month of contraction in Canadian operations. Thus, the country shifted its consumption from domestic to imported aluminium to meet demands from end-user sectors.

The highest increase was seen in Canada’s aluminium scrap imports, which grew remarkably by 57 per cent M-o-M to 14,193 tonnes. The United States was the primary source of scrap, supplying 13,961 tonnes, accounting for 98 per cent of the total scrap imports.

From August 2022, Canada’s scrap import volume this year grew by 25.81 per cent from 11,281 tonnes.

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Canada’s imports of raw aluminium increased 20 per cent to 808,895 tonnes during August 2023 from 672,119 tonnes in July, suggesting higher demand for primary aluminium ingot. On an annual basis, the imports grew by 23 per cent from 656,521 tonnes.

Finished flat product imports surged by 33 per cent month-on-month to 50,632 tonnes, driven by the construction, automotive, and consumer electronics sectors, where flat aluminium products are widely used.

The imports of semi-finished products also recorded a striking growth of 27 per cent month-on-month, totalling 12,705 tonnes. However, on a year-on-year calculation, the imports descended by 34 per cent from 19,113 tonnes to 12,705 tonnes.

Received under the content exchange agreement with SteelMint