Domestic aluminium demand in North America remains strong, up by 5.3% in 1Q2022

According to preliminary estimates released by the Aluminum Association, as part of its Aluminium Situation report, North American (U.S. and Canada) aluminium demand in the first quarter of 2022 (1Q2022) had increased by 5.3 percent. This comes after an expected 8.2 percent increase in demand through the end of 2021 (up from 7.7 percent before), and amid a period of strong investment by aluminium producers, fabricators, and recyclers in the United States.

“The picture for the U.S. aluminum industry remains very strong. Economic recovery, demand for recyclable and sustainable materials and robust trade enforcement are all making America a very attractive place to make aluminum – as evidenced by the fastest pace of investment for the industry in decades,” said Charles Johnson, president & CEO of the Aluminum Association.

The major highlights of the report include:

• In the first quarter of 2022, aluminium demand in the United States and Canada (shipments by domestic manufacturers plus imports) was anticipated to be 7.0 million pounds, up from 6.6 million pounds in 1Q2021.
• In the first quarter, demand for all major semi-fabricated product categories grew Y-o-Y, led by sheet and plate goods (15.2 percent) and extruded products (7.3 percent). Overall, demand for mill products increased by 11 percent year over year in the first quarter.
• Aluminium shipments to foreign nations (excluding scrap) fell by 29.8 percent in the third quarter.
• The Association's net new orders of Aluminium Mill Products Index (baseline index of 100) have increased by 1.8 percent year-to-date to 116.88.
• In the third quarter, imports of aluminium and aluminium products into North America increased by 37.4 percent year over year, after increasing by 21.3 percent in 2021. While increasing, these import levels are still below the 2017 highs.

The aluminium sector has committed or invested about $3.5 billion in U.S. manufacturing in the last year and more than $6.5 billion during the last decade. According to the organisation, member business Novelis invested $2.5 billion to create a greenfield low carbon aluminium rolling mill and recycling plant in Bay Minette, Alabama, which is the single greatest domestic aluminium investment in decades.