US aluminium imports in May soar to near 2 year high

Reuters reported that shipments of aluminum into the United States rose for a second straight month in May spiking to a near 2 year peak as a growing domestic market deficit and improved demand conditions drove the builds.

Data from the US International Trade Commission showed that May aluminum imports surge to 160,847 tonnes up more than 50% from April to stand at their highest level since July 2009 when imports reached 189,671 tonnes.

Mr Jorge Vazquez founder and senior VP with Harbor Intelligence said that "As we know there is supply tightness in the US and that has caused premiums to increase considerably. The US Midwest spot aluminum premium paid above the London Metal Exchange cash price CMAL0 rallied to a record peak at 9.5 cents per lb in May of this year as lengthy load out rates at the exchange monitored warehouses, especially in Detroit, continued to choke off supply flows.”

Mr Vazquez said that the market has reacted to those incentives by shipping more semi finished aluminum to the US. The increase in US imports comes at a time when demand from aluminum intensive industries is on the rise. Demand was also seen picking up from the automotive sector which accounts for about 25% of US aluminum demand. Automakers reported a 7.1% sales increase in June from a year earlier with a seasonally adjusted annualized rate of sales reaching 11.45 million vehicles.

He said that the combination of the increased demand in the US supplies tightness and the record high premiums without doubt explain the bulk of the increase in imports.