The US Geological Survey's latest data showed the United States’ domestic primary aluminium production trended down during the first two months of 2024, while scrap recovery surged suggesting the country's constant shift to recycled aluminium from the primary metal.
Aluminium recovered from scrap in February 2024 was 293,000 tonnes, 6.54 per cent up from 275,000 tonnes a month ago and 6.93 per cent more than 274,000 tonnes a year earlier. Of the total scrap recovered, 163,000 tonnes was recovered from new scrap and 129,000 tonnes from old scrap.
The total recovery of scrap in the first two months of 2024 was 568,000 tonnes, compared to 552,000 tonnes a year ago.
From January to February 2024, the United States combined production of primary aluminium amounted to 115,000 tonnes, reflecting a decline of 6.5 per cent from 123,000 tonnes during the corresponding period of the previous year.
The United States' primary aluminium production recorded a year-on-year fall in the first two months, given the bearish output in both January and February. While in January 2024, the production fell by only 1,000 tonnes Y-o-Y to 63,000 tonnes, the output in February plunged 7,000 tonnes or 11.86 per cent to 52,000 tonnes, found USGS. In February 2023, the United States' domestic primary aluminium production was 59,000 tonnes.
On a month-on-month basis, the United States' primary aluminium output edged a decrease of 11,000 tonnes or 17.46 per cent from 63,000 tonnes to 52,000 tonnes.
In February 2024, the United States average daily production was 1,790 tonnes, 11.39 per cent less than 2,020 tonnes in January 2024 and 5.79 per cent down from 1,900 tonnes in February 2023.
The February 2024 average US spot market price of primary aluminium ingot was $1.17 per pound, slightly less than that in January 2024 and 16 per cent less than in February 2023. The average cash price of primary aluminum ingot on the London Metal Exchange (LME) in February 2024 was $0.99 per pound, essentially unchanged from January 2024 and 10 per cent less than in February 2023.
Inventories of primary aluminum in LME-approved warehouses, including off-warrant inventories in the United States were 4,954 tonnes at the end of February 2024, 49 per cent more than that at the end of January 2024. Inventories of secondary aluminium (North American Secondary Aluminium Alloy Contract) in LME-approved warehouses, including off-warrant inventories, in the United States were 682 tonnes at the end of February 2024, one-half less than that at the end of January 2024.
