Current Condition of Aluminum Worldwide and Pricing
The global aluminum market is on a steady growth trajectory, fueled by surging demand from the automotive and construction sectors. With China leading production, analysts forecast a remarkable market expansion of 5-6% by 2030, potentially reaching up to $307 billion. As sustainability takes center stage, recycling initiatives are reshaping the industry, driving scrap prices higher. Recent trends reveal significant price increases, with aluminum prices rising by nearly 22% year-over-year. Curious about how these dynamics affect pricing and market conditions? Dive deeper into the current state of aluminum and discover what lies ahead for this vital metal.
The Argument for Free Trade
Free trade remains a cornerstone of economic growth, supported by centuries of evidence and economic reasoning. This article revisits core principles from Adam Smith and Thomas Sowell to examine recent developments in international trade, offering a data-driven defense of open markets.
Aluminum Futures – Market Update (April 2025)
Aluminum futures fell below $2,570 per metric ton ($1.166/Lb.), the lowest in ten weeks, as rising trade tensions and tariffs threaten global demand.
Painting Aluminum: An Overview of Coating Options and Standards
Learn how aluminum painting relies on a two-step process—pre-treatment and application—to achieve durable, high-performance finishes that meet AAMA standards.
Anodizing Aluminum
Before you specify and pay too much, consider the difference and costs! The American Architectural Manufacturers Association (AAMA) Specification 611-12 outlines test procedures and minimum standard requirements for Class I and Class II anodic coatings. *Coatings should be visibly free of surface imperfections and color shift on exposed surfaces when observed from 10 feet or more.* *Data extracted from AAMA 611-12; MIL-A-8625F; ASTM test methods B 244-97, 487-85, 13795, 117-07, 136-84, and 680-80.* Yes, we do them all. For more detailed information and expert application advice, please contact us via phone or email.
US Aluminum Production
The US, once a global leader in aluminum production, now produces just 1.2% of the world’s aluminum supply. In 2024, we produced a mere 680,000 tons, or 50% of demand in the US. The US imported over 4.8 million tons of ingot and billet last year — and Canada alone supplied 2.6 million tons of that total. Our number one trading partner for this commodity is Canada. Statistically, Mexico was not even on the map. Why? The cost of energy. Aluminium smelting is incredibly energy-intensive, with electricity often accounting for up to half of production expenses. In the US, industrial electricity prices are significantly higher than in Canada, where most aluminum smelters are concentrated in Quebec. Thanks to abundant, low-cost hydroelectric power, Canadian smelters enjoy energy costs up to three times lower than their US counterparts. If tariffs are fully implemented, prices for aluminum, raw and processed, will increase worldwide. Domestic extrusion mills have already notified customers of impending increases.
Will Tariffs Trigger a Trade War?
A trade war is an economic conflict between countries characterized by the implementation of protectionist policies, particularly in the form of trade barriers. These barriers can take various forms, including tariffs, value added taxes, import quotas, domestic subsidies, currency devaluation, and embargoes. As one country imposes a trade barrier, the other typically retaliates with its own measures, leading to a cycle of escalating tensions. Trade wars often arise when a government perceives that another country is engaging in unfair trading practices detrimental to its domestic markets. To protect domestic industries, a country may impose a tariff on key imports from other nations. The retaliatory actions can escalate into a full-blown trade war. While trade barriers may protect industries in the short term, they generally have negative long-term effects on the overall economy. The effects of trade wars can be divided into short-term and long-term impacts. In the short term, trade barriers may successfully protect domestic businesses. However, retaliatory measures from the opposing countries often lead to adverse effects on other sectors, with some businesses thriving while others suffer. Economists generally agree that, in the long term, trade wars can harm the economy by slowing GDP growth and reducing international competitiveness. The concept of comparative advantage suggests that when import costs rise, consumers ultimately bear the burden. Even if protected domestic industries face less competition, they often do not lower their costs, leading to inefficiencies that can stifle consumer demand and slow economic growth. Over time, this may result in fewer job opportunities overall. Prolonged trade wars are generally viewed negatively due to higher costs and decreased consumption. Such policies can create market inefficiencies and reduce competitiveness. With less competition, industries may feel less pressure to innovate, leading to stagnation in production technologies. Did you know – the USA exports approximately $1.5 Trillion of goods globally. Prices for U.S. imports increased 0.3 percent in January, after rising 0.2 percent in December. U.S. export prices rose 1.3 percent in January following a 0.5-percent increase the previous month. Over the past year, import prices increased 1.9 percent and export prices rose 2.7 percent
Aluminum Market Update: January 2025
Supply Squeeze: Sanctions on Russian Aluminum Set to Impact Market Aluminum futures rose to over $2,670 per metric ton ($1.211 LB), extending the surge since hitting a four-month low of $2,490 on January 6th. The surge was supported by expectations of lower supply from key producers and respite for demand. The EU was set to sanction the import of primary aluminum from Russia in its upcoming package, reducing metal from the country as manufacturers have pivoted from buying Russian goods following its invasion of Ukraine in 2022. China’s Production Cap: Record Highs but Output Slows China produced a record-high 44 million tons of aluminum ingot in 2024, meaning that output will slow as Beijing capped output at the 45 million tons in 2017 to prevent excess supply. On the demand side, industrial output in China accelerated sharply in December. Demand on the Rise: Industrial Output in China Accelerates Aluminum increased 138 USD/Ton or 5.41% since the beginning of 2025, and forecasted to trade at 2599.70 USD/Ton ($1.18/Lb.) by the end of this quarter, according to Trading Economics global macro models and analysts’ expectations. Looking forward, we estimate it to trade at 2733.67 ($1.24/Lb.) in 12 months’ time. Trading Economics January 20, 2025