North American aluminium demand up 4.8 % in 2022
Demand for the aluminium industry in the US and Canada grew 4.8 % year-on-year in 2022, according to preliminary estimates by the Aluminum Association.
This outpaced overall estimated 2.7 % Gross Domestic Product (GDP) growth in the United States in 2022. While estimates show year-on-year growth, the report indicates a slowdown in demand for the second half of 2022.
“Despite some headwinds and softer demand in the second half of the year, this latest data shows an industry built to last,” said Charles Johnson, president and CEO of the Aluminum Association (AA). “Geopolitical disruptions, supply chain issues and inflationary pressures could continue to pose some challenges in 2023. However, with historic investment in US aluminium manufacturing last year and continued market growth opportunities, the mid-and long-term trend lines for aluminium in America remain incredibly strong.”
Key messages of the report:
Aluminium demand in the United States and Canada (shipments by domestic producers plus imports) totalled an estimated 27.5bn pounds in 2022, advancing 4.8 % over 2021. Overall demand in 2022 approached record levels seen in 2018 and 2019.
Most major semi-fabricated – or ‘mill’ – product categories saw increased year-over-year demand growth, led by sheet and plate products (6.1 %) and foil (5.1 %). In total, mill product demand grew 4.1 % year-on-year in 2022.
Aluminium exports (excluding scrap) to foreign countries increased 3.8 % from the year-ago level
US aluminium industry with record investments
Last year, the US aluminium industry announced more investment in domestic manufacturing than in the past several decades combined. Firms announced billions to build new aluminium rolling and recycling capacity, including greenfield plants scheduled to come online in the coming years. It has been more than 40 years since a similar, new US-based mill was built.
A recent highlight of investment in domestic manufacturing is Steel Dynamics’ project for a new aluminium flat rolling mill in Columbus, Mississippi.
The U.S. Aluminum Extruders Coalition and the United Steelworkers (USW) union filed petitions charging that unfairly traded imports of aluminum extrusions from numerous countries materially injuring the American aluminum extrusions industry.
The demands for aluminium tubes and aerosol cans remained stable overall in 2023, despite the challenges the sector has to meet.
The European aluminium association European Aluminium (EA) welcomes the European Commission’s proposed 12th package of sanctions against Russia.