US Primary aluminium production up 20% to 891,000 tonnes in 2018 driven by reopening of smelters

According to the latest report from US Geological Survey, the US primary aluminium production in December 2018 was 95,000 tonnes. The average daily production in December was 3,050 tonnes, 4% more than that in November 2018, 48% more than that in December 2017. The total aluminium production in 2018 stood at 891,000 tonnes, about 20% more from 741,000 tonnes in 2017. The restarting of operations by Alcoa and Century Aluminum contributed to the increase.

Recycled aluminium still continued to contribute a major part of total aluminium supply in the US. Total aluminium recovered from scrap in December 2018 was 285,000 tonnes, 4% less than that in November 2018 but slightly more than that in December 2017. The total scrap recovery in 2018 stood at 3.6 million tonnes in 2018, essentially unchanged from the amount in 2017.

The December 2018 average U.S. market price of primary aluminium ingot decreased slightly from that in November 2018 to US$2336.8 per tonne. Inventories of primary aluminium in LME-approved warehouses in the United States decreased to 53,050 tonne at the end of December from 57,175 tonne at the end of November.

Total imports (including scrap) for consumption of aluminium in 2018 were 10% less than those in 2017 to 6.2 million tonnes. Total exports of aluminium (including scrap) increased by 6% during 2018 compared with those of the previous year to 3 million tonnes.

The 10% tariffs on imported aluminium have helped the US aluminium industry restart some of its closed capacity helping in production boost. However, most of the plotlines need immediate maintenance.  Century Aluminum announced shut down of one of the potlines at the 250,000-tpy smelter in Hawesville, KY, for maintenance in March or April. Two of the smelter’s five potlines were reportedly 2 years overdue for maintenance. Three other potlines that were restarted in 2018 will complete ramp-up by March and start maintenance work.