Aluminum demand in North America falls by 3.9%.

The Aluminum Association, in its monthly “State of Aluminum” report, shared preliminary figures indicating a 3.9% decline in North American aluminum industry demand during 2023. This decrease is calculated based on shipments by U.S. and Canadian producers, as well as imports.

After suffering a decline in the third quarter, the industry experienced a slight recovery in the fourth quarter and managed to end the year with results similar to those of the previous year. The decline in demand was mainly caused by a 25% drop in imports during 2023, while shipments of domestically manufactured products remained stable. On the other hand, the Aluminum Rolling Products Net New Orders Index surpassed previous levels reaching an index of 114.5 in January 2024 (with a baseline index of 100), this being its highest peak since June 2022.

“While North American demand declined slightly in 2023 following strong results in 2022, this latest data shows early signs of recovery,” said Charles Johnson, president and CEO of the Aluminum Association.

“With historic investment in U.S. aluminum manufacturing, steady domestic shipments and continued growth opportunities in many of our key markets, trend lines for U.S. aluminum remain strong.”

Aluminum demand in the United States and Canada, including shipments from domestic producers and imports, is estimated to reach 26,271 million pounds in 2023. This figure represents a decrease from the total of £27,337 million recorded in 2022. During the last 12 years, the aluminum industry in the country has experienced a compound average annual growth rate (CAGR) of 2.4%.

In early 2024, the benchmark index used by the association to measure net new orders for aluminum fabricated products reached an exceptionally high level of 114.5, compared to its last peak in June 2022. This suggests a significant increase in market demand for this type of product.
The electrical wire and cable sector showed a 12.1% increase in demand over the previous year, demonstrating that the electrical infrastructure market remains strong and growing. Over the course of 2023, the request for semi-finished goods, also known as “mills”, experienced a decrease of 9.2% compared to the previous year.

According to recent statistics, purchases of ingot and milled aluminum products in North America, including the United States and Canada, have decreased by 26.3% by the end of 2023.

In 2023, exports of aluminum ingots and mill products between the United States and Canada (excluding cross-border trade) increased by 25.6%.

During the last eight years, the companies that are part of the Aluminum Association have invested more than 10 billion dollars in manufacturing operations within the national territory. More than half of that amount was recently announced in 2021, driven by the need for sustainable packaging, safe and efficient vehicles, environmentally friendly buildings and vital infrastructure.

The Aluminum Association has developed more than 24 industry statistical reports through surveys of producers, manufacturers and recyclers. Subscribers have the ability to access an online portal where they can directly manipulate data to create interactive charts and graphs that can be used in presentations. These reports provide a detailed overview of the current aluminum situation and are a useful tool for those interested in this industrial sector.