North American aluminium demand records a 4.5% drop through H12023

On Thursday, September 7, the Aluminum Association, the aluminium industry's leading voice in the United States of America, published its monthly Aluminum Situation report, which includes early projections indicating a 4.5 per cent decline in demand for the aluminium industry in North America (comprising the United States and Canada) for the first half of 2023. As per the report, the aggregate demand for aluminium in the United States and Canada, including shipments by local manufacturers and imports, was around 13.3 million pounds during the first quarter, in contrast to the 13.9 million pounds recorded in the first half of 2022.

"While aluminum demand has declined in the first half of 2023 following a buoyant 2022, it remains relatively strong compared to the past decade. Projects to build new, U.S.-based aluminum rolling mills for the first time in decades are underway as the long-term industry outlook is quite strong," said Charles Johnson, president & CEO of the Aluminum Association."

Other important takeaways from the reports are:

• The electrical wire and cable industry had a notable increase in demand, with a year-over-year growth rate of 13.1 per cent during the first half of the year. This rise may be attributed to the continued strength of the electrical infrastructure sector.
• The demand for semi-fabricated or "mill" products had a year-over-year decline of 9.4 per cent during the second quarter.
• The half saw a notable surge of 23.4 per cent in aluminium exports (excluding scrap) to international markets.
• The Association's Index of Net New Orders of Aluminium Mill Products, now at 107.20 with a baseline index of 100, has seen a year-to-date decrease of 8.1 per cent.
• The importation of aluminium and aluminium products into North America (namely the United States and Canada) has seen a decline of around 19 per cent over the first six months of the year.

Since 2021, firms that are members of the Aluminium Association have disclosed investments amounting to about $6 billion in domestic manufacturing operations. This figure represents a total investment of $9 billion over the last decade. New manufacturing facilities are also being established in the United States, called greenfield facilities. Notably, such investments in new U.S.-based manufacturing facilities have not been seen since the 1980s. The desire for sustainable packaging, safe and efficient automobiles, greener buildings, and essential infrastructure have contributed to the growth of aluminium.