Rolled aluminium production rise in the US could eliminate imports

According to analysts, US importable beverage can sheet will almost disappear due to the additional production of three major US aluminium rolling mills by the end of 2026. Even though demand for this packaging is expected to grow by then, the three mills will virtually eliminate importable beverage can sheets by that time.

As per a report, there will be an increase in production of over 700 000 tonnes per year, which will 'more than meet current US requirements and should satisfy the expected growth in demand.'

The American steel producer, Steel Dynamics, whose board of directors has already authorized to construct and operate a 650,000-metric-ton low-carbon, recycled aluminium flat-rolled mill, the stated 45% of its new south-eastern mill (650 000 tonnes per year) will focus on beverage can sheet (meaning around 290 000 tonnes). Concurrently, at Novelis' Bay Minette, Alabama mill, more than half of the 600 000 tonnes are dedicated to producing beverage can sheets.

In 2021, according to data from the US Department of Commerce, the country had imported 222,614 tonnes of can tab stock. As per observation, 752,000 tonnes of growth per year seems excessive.

Steve Fisher, the CEO of Novelis, said, "Since 2018, packaging companies have announced investments that increase demand for new sheets by up to 680 000 tonnes per year. We're not surprised others are following our lead. We fully anticipated the market requiring more beverages can sheet and feel very comfortable."

Unity Aluminium was one of the pipeline's only integrated Greenfield rolling capacities at the beginning of the year, which has been seeking funding since 2017.

It represents the first time such investment has been made in decades - excluding stalled projects like Unity's. Furthermore, Arconic's Tennessee mill has returned to a majority can sheet product mix following the expiration of its non-compete agreement with Alcoa.