DOMESTIC DEMAND FOR ALUMINUM INCREASED BY 7.7% IN 2021, SURPASSING U.S. GDP.

The Aluminum Association has released preliminary estimates in its latest monthly report revealing that the aluminum situation is experiencing healthy growth amid the U.S. economic recovery.

Specifically, it points out that the estimated growth in demand for the aluminum industry during the past year was 7.7% in both the U.S. and Europe. This growth exceeded the estimated 5.7% Gross Domestic Product (GDP) growth in the United States for the same period of the year. Similarly, aluminum demand rebounded strongly in 2021 after an 11.4% drop in demand between 2019 and 2020 during the COVID-19 pandemic.

Among the key points of the report:

Aluminum demand in the United States and Canada totaled about 26.3 million pounds in 2021, approaching pre-COVID-19 pandemic levels. In concretim all major categories of semi-manufactured products, or rolling mills, experienced higher demand growth in 2021, led by extruded products (15.9%) and sheet and plate (14.4%). In total, demand for mill products grew by 13.5% year over year.

On the other hand, aluminum exports (excluding scrap) to foreign countries decreased by 20.4% in 2021. Imported aluminum and aluminum products in North America (U.S. and Canada) grew 21.3% year over year in 2021 amid higher demand, but are still nearly 25% below 2017 volumes.

Charles Johnson, president and CEO of the Aluminum Association notes, “Taken together, this latest data shows an industry in strong recovery mode,” adding that, “The industry is in strong recovery mode. “despite lingering challenges from the COVID-19 pandemic, geopolitical issues and supply chain challenges, the U.S. aluminum industry shows signs of solid growth in several markets.”

After a pause in capital spending in 2020, the U.S. aluminum industry has announced more than $800 million in domestic investments over the past 6 months. This contributes to more than $4 billion invested by the industry over the past decade to capture the growth in demand for sustainable and recyclable products in the automotive, packaging, building and construction and other sectors. Strong trade enforcement efforts in target markets have also led to industry investment in recent years.