North American aluminum demand rises 5.3% in Q1: Aluminum Association

North American aluminum demand in the first quarter rose about 5.3% on the year after investment in the US aluminum industry hit its "highest level in decades" over the last 12 months, the US-based Aluminum Association said May 24.

"The picture for the US aluminum industry remains very strong," Aluminum Association CEO Charles Johnson said in a statement. "Economic recovery, demand for recyclable and sustainable materials and robust trade enforcement are all making America a very attractive place to make aluminum as evidenced by the fastest pace of investment for the industry in decades."

Aluminum demand in North America reached about 7 million lb in the quarter, with the estimate based on shipment volumes from US and Canadian producers and imports.

Among semi-fabricated mill products, year-over-year demand for aluminum sheet and plate climbed 15.2% and demand for extrusions grew 7.3%.

Imports of aluminum and aluminum products into North America increased 37.4% on the year in Q1. This follows an increase of 21.3% in 2021.

Despite higher imports, the Aluminum Association said shipments into North America remain below record volumes recorded in 2017 but did not provide specific numbers.

US aluminum imports totaled 5.56 million mt in 2021 and 4.9 million mt in 2020, falling below 6.87 million mt in 2017, according to Commerce Department data. The US imposed a 10% tariff on aluminum imports from most countries in 2018.

Meanwhile, the Aluminum Association said North American aluminum exports dropped 29.8% on the year in Q1.

The industry group said North American aluminum demand in 2021 is also estimated to have risen 8.2% to 26.4 million lb. This estimate was revised from the association's previous report of a 7.7% increase in demand for the year.

The higher demand projections for Q1 and full year come as the aluminum industry "has collectively committed or invested nearly $3.5 billion in US manufacturing over the past year and more than $6.5 billion over the past decade," the Aluminum Association said, adding that strong trade enforcement has prompted investment.

Plans for capacity expansion this year have so far been highlighted by Novelis' announcement in May that it would invest $2.5 billion to build an aluminum rolling mill and recycling facility in Bay Minette, Alabama, representing the single largest US aluminum investment in decades.

In April, Norway-based Norsk Hydro broke ground on an aluminum recycling and extrusion ingot production plant in Cassopolis, Michigan, that will have a 120,000 mt/year capacity when operations begin in 2023.