Home / Commodities / Freight News / US P1020 aluminum imports fall as spot market remains quiet

US P1020 aluminum imports fall as spot market remains quiet

Primary unalloyed aluminum imports into the US decreased 16.6% month on month in September to 132,530 mt, as shipments from Canada fell by 8.9% to 110,679 mt, according to the US Census Bureau data released Nov. 4.

Total P1020 imports in January-September fell 25.3% on the year to 1,193,157 mt.

Shipments of higher purity from origins like the United Arab Emirates, Russia and India fell by 75.2% month on month in September, with continued logistical bottlenecks, high freight costs and regional tightness. Replacement costs in the US could still be pushing around 36 cents/lb, according to market sources. The high-purity sows from the UAE were still down around 45% year on year through September.

Market sources noted freight rates have remained elevated and lead times have been lenghty.

Market sources also said concerns around barges and trucking remained, as some warehouses like Owensboro, Kentucky and other Southern warehouses remained tight compared with Toledo, Ohio, where the costs to move material from Midwest Terminals further inland was still up well over 200% year on year. Usually the region is discounted by 2-3 cents/lb, but freight to the Midwest is being affected by long lead times of up to 12 weeks to rail inland.

The same data showed total primary aluminum imports under HTS code 7601 were 286,407 mt in September, down 10.7% month on month and up 33% year on year.

Shipments of P1020 or greater purity from Canada were down 26.43% year on year in January-September. Shipments by water were down 59.42% year on year to 22,641 mt in September, while shipments by road were up 103% at 2,369 mt.

Exports of P1020 from British Columbia to the US stood at 855 mt in September, down around 22% from August..

Canadian P1020 imports accounted for just under 83.51% of US unalloyed imports for September and 68.34% of the previous 10-year average for the same month. Nearly all of that material is produced by hydro-powered smelters and is considered low carbon and fall around or below the 4 mtCO2/t level across Scope 1 and Scope 2, as Canada has been able to sell into the US at duty-paid premium levels supporting the all-in of their aluminum. S&P Global Platts nature-based carbon credits prices have risen almost 132.9% through Nov. 4 since their launch on June 14.

Imports of ingot from Australia were down nearly 72% month on month to 4,814 mt in September. Once again no imports from New Zealand were seen during the month, the imports accounted for some of the flow of high-purity ingot, P0404, to the US West Coast.

The Platts US Midwest premium continued to fall from record highs, last assessed at 29.45 cents/lb on Nov. 4, as the spot market is expected to remain quiet through year-end as consumers are less willing to add to inventories and increase balance sheets to end the year. The market has been offered lower over the last week by traders looking to reduce their inventories before year-end. Demand is expected to remain firm to start 2022 because of the ongoing regional tightness in aluminum supply.

Demand for VAP expected to remain strong in 2022
Imports of value-added products, such as billet, foundry alloys and slabs, were up 16.3% year on year in September, as demand remained firm. Shipments from Canada, the UAE, Bahrain and Argentina rounded out the top four as September totaled 153,877 mt, down 4.8% month on month.

Imports from Canada of billet, slabs and foundry alloys to the US totaled 92,062 mt, up 8.4% year on year, as alloyed aluminum from Canada could flow into the US duty-free and would not fall under the USTR guidance import levels set in 2020. Year-to-date imports of slabs from Canada were up almost 70% as the tight prime scrap market forced some mills to approach the spot market for more primary and slab to keep the chemistry mix of products, and as mills look to utilize more scrap in the push to decarbonization.

Imports of industrial aluminum scrap were up 76% year on year, year to date through September, while imports of used beverage cans were up 44%. Exports have also picked up in September up 10% from 2020.

Imports of VAP from Russia continued to flow into the US — up around 76% year on year through September.

The Platts US spot 6063 billet upcharge reached a record high of 28 cents/lb on Aug. 12, but pulled back slightly to 25 cents/lb on Sept. 2 and has remained at that level as 2022 contract negotiations start.
Source: Platts

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping