Aluminium Sheet Prices Stabilize at the End of June 2023 in the US Market

In the last week of June, the Aluminium Sheet prices were showing a stable trend owing to the dwindling feedstock Aluminium prices coupled with a slight increase in supply level. The demand from the downstream automobile and aerospace sector for Aluminium Sheets remained stable in the global spot market. Additionally, the US tariff imposition and uncertain Aluminum prices have brought a resisting sentiment among end-users in the European Aluminium Sheet market that halted the increase in order placements.

The price of feedstock Aluminium has shown an ambiguous trend this week in the local US market as the prices were down initially, then rose on 27th June, and lastly declined slightly in the week ending. Furthermore, the increase in the supply-demand gap had a degrading effect on Aluminium Sheet prices. The supply of Aluminium Sheet has been on the rise amid an increase in extraction process as Alcoa, a major Aluminium producer, has invested in a clean energy transition process for Bauxite mining in Brazil. Shape Corp, a global supplier of lightweight metals such as Aluminium, has started a new high-tech extraction facility in Trenton, Ohio, positively influencing the rising extraction rate in the US. The advancement in the hydroelectric supply chain and improvement in smelting technologies has kept the refining and production of Aluminium Sheet on a higher edge.

The import of Aluminium Sheets from the overseas market, such as from European and Asian manufacturers, has mounted as the imported goods were available at a lower price in the local spot market. The higher inventory level supported the falling Aluminum Sheet prices as the supply remained at a higher edge from the Russian manufacturing sector, especially from Rusal, as the production rate was high. Additionally, Alcoa Corporation has asked the warehouses in the exchange market to restrict the intake of Aluminium Sheets of Russian origin to uplift the price of locally manufactured products.

The demand from the downstream sectors has been stable this week as the automobile and construction sector has shown a steady rate. Meanwhile, the increased dependency on secondary Aluminium manufacturing and mounting usage of recycled Aluminium amid rising concern for green steel and Aluminium production has declined the demand for primary Aluminium Sheet manufacturing in the US spot market. The mounting supply of Aluminium Sheets in the local market has provoked the US government to impose major tariffs on importing from European and Indian Aluminium Sheets manufacturing industries.

According to ChemAnalyst, the price of Aluminium Sheets in the US spot market is expected to grow significantly as the demand from the downstream automobile and construction sector is likely to increase. The renewable energy sector has been rising in the USA, which would increase the demand and help uplift the Aluminium Sheet prices in the US spot market. The US government plans to resolve the tariff imposed on the European market until the end of the third quarter, which will increase the trade condition and denote an increased demand for the Aluminium Sheet in the US spot market.