As part of its monthly Aluminum Situation statistical report, the Aluminum Association released preliminary estimates showing a 3.9 percent contraction in year-over-year demand for the aluminum industry in North America (shipments by producers in the U.S. and Canada plus imports) in 2023. Industry demand recovered slightly in the 4th quarter and ended the year close to 2021 results. The majority of this demand decline was driven by a drop in imports of around one-quarter in 2023 while domestic producer shipments (ingot + mill products) held essentially steady. Meanwhile, the Association’s Index of Net New Orders of Aluminum Mill Products hit 114.5 in January 2024 (baseline index of 100), its highest level 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 & chief executive officer of the Aluminum Association. “With historic U.S. aluminum manufacturing investment, steady domestic shipments and continued growth opportunities in many of our key markets, the trendlines for U.S. aluminum remain strong.”
Among key takeaways from the report:
- Aluminum demand in the U.S. and Canada (shipments by domestic producers plus imports) totaled an estimated 26,271 million pounds in 2023, compared to the 2022 total of 27,337 million pounds.
- Since 2009, the domestic aluminum industry has enjoyed a 2.4 percent compound annual growth rate (CAGR).
- In January 2024, the Association’s Index of Net New Orders of Aluminum Mill Products (baseline index of 100) hit 114.5 – its highest level since June 2022.
- Electrical wire & cable saw 12.1 percent year-over-year demand growth as the electrical infrastructure market remains strong.
- In total, semi-fabricated – or “mill” – product demand declined 9.2 percent year-over-year in 2023.
- Imports of aluminum ingot and mill products into North America (US and Canada) have fallen 26.3 percent through year end 2023.
- Exports of aluminum ingot and mill products from the U.S. and Canada (excluding cross border trade) increased 25.6 percent in 2023.
Since 2013, Aluminum Association member companies have announced more than $10 billion in investments for domestic manufacturing operations. More than half of that investment has been announced since 2021 – thanks to demand for sustainable packaging, safe and efficient vehicles, greener buildings and vital infrastructure.
