North American aluminum demand declines in 2023

According to preliminary estimates, North American aluminum demand (shipments by producers in the U.S. and Canada plus imports) declined by 3.9 percent in 2023 from the previous year, according to the Aluminum Association’s Aluminum Situation statistical report.

The Arlington, Virginia-based association says industry demand recovered slightly in the final quarter of 2023, ending the year close to 2021 results. Much of this demand decline was driven by a one-quarter reduction in imports in 2023, while domestic producer shipments of ingot and mill products held essentially steady. Meanwhile, the association’s Index of Net New Orders of Aluminum Mill Products hit 114.5 in January (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,” Aluminum Association President and CEO Charles Johnson says. “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.”

According to the report, aluminum demand in the U.S. and Canada totaled an estimated 26,271 million pounds in 2023 compared with 27,337 million pounds in 2022.

Since 2009, the domestic aluminum industry has enjoyed a 2.4 percent compound annual growth rate.

Electrical wire and cable saw 12.1 percent year-over-year demand growth as the electrical infrastructure market remains strong, while semifabricated, or mill, product demand declined 9.2 percent year over year in 2023.

Imports of aluminum ingot and mill products into the U.S. and Canada have decreased by 26.3 percent through year-end 2023, while exports of aluminum ingot and mill products from the U.S. and Canada (excluding cross-border trade) increased by 25.6 percent last year.