The Second quarter of 2023 North America Aluminium Sheet Prices

North America

In the second quarter of 2023, the Aluminium Sheet prices showed a bullish price trend in the North American market amid the tight supply and increased demand from the downstream automobile industry. In April, the inventory level declined as the production rate decreased in the local Aluminium Sheet manufacturing plants. The feedstock Aluminium price also surged as the consumption from the downstream automotive industry remained on the higher verge in the local and Overseas aluminum industries. As per market players, the downstream automobile sector experienced an uprise as the sales of electric vehicles increased, which led to increased consumption of Aluminium Sheets in the US automotive market. Infrastructural development and the rising dependency on renewable energy concerning lower CO2 emission increased the usage of Aluminium ingot in the US spot market. According to market players, the buyers were placing large orders, and restocking was observed as the US Aluminium Sheet market showed a long-term growth rate. Consequently, the prices of Aluminium Sheet Al1100 for DEL New York (USA) settled at USD 15540/MT in the second quarter ending June 2023.

Asia-pacific

In the second quarter of 2023, South Korean Aluminium Sheet prices showcased a downward momentum. A labor union strike decreased overseas demand and halted production in major downstream industries. In April, the overseas demand declined as the economic condition of countries such as the USA and China was crippling. The downstream automobile industries showed a pessimistic market sentiment that provoked the buyers to halt the placement of large orders as the Aluminium sheet prices were expected to shift further downward. In H2 of the second quarter, the shipping industry had pessimistic market sentiment amid labor shortage along with the lowering of wages hurting the local industries. The Korea Enterprises Federation (KEF) were suggesting the government lower the minimum wages for migrant workers having E7 VISA to uplift the earning of the Korean native workers. Around June, the two major Umbrella Unions, the Korean Confederation of Trade Unions (KCTU) and the Federation of Korean Trade Unions (FKTU), started a nationwide protest against President Yoon-Suk-yeol’s administration to protest the suppression of organized labor by the manufacturing and construction giants in South Korea. The ripple effect caused by this hampered the supply chain and reduced the production rate, resulting in an increase in price at the end of the second quarter. The price for Aluminium sheet Al1100 for FOB Busan (South Korea) got settled at USD 3220/MT in the quarter ending June 2023.

MEA

The Aluminium Ingot Prices in the United Arab Emirates market showed a continuous decreasing trend throughout the second quarter of 2023. The decreasing price was supported by the fact that the local inventory level was on a higher edge as the import of Aluminium sheets increased from the overseas Indian market. The supply was already surging as the production rate was high amid the Emirate Global Aluminium, a major Aluminium Sheet manufacturer, spending a billion dirhams in industrial development to expand its production capacity, which led to an increase in local inventory in the UAE spot market. The feedstock aluminum supply also remains on a higher edge from the overseas suppliers from the USA and European market, resulting in declining Alumina prices and plummeting the cost support in producing Aluminium Sheet. The Uncertain Global economic condition was considered a major drawback in declining Aluminium Sheet prices in the local as well as global markets. The demand from the downstream automotive industry declined as the buyers were worried about the safety concern from the imported Aluminium Sheet parts that provoked them to halt in placing large orders in the UAE spot market. The price for Aluminium sheet Al1100 for CFR Mina Jebel Ali (United Arab Emirates) got settled at USD 3154/MT in the quarter ending June 2023.

Europe

In the second quarter of 2023, the prices of Aluminium sheets showed an overall increase in the German spot market amid tight inventory levels along with an increase in production cost. In the early weeks of the second quarter, the supply and the flat downstream demand from the automobile industries remained stable. The tariff imposition by the US government led to a small amount of sluggish market sentiment at the start of the second quarter. The price increase later persisted as the feedstock prices surged, increasing the alloy surcharges and production costs rose for the Aluminium Sheets. The downstream automobile sector was expanding as the sales of electric vehicles increased, leading to increased consumption and the rising price of Aluminium Sheets in the German spot market. The hike in the premium cost provoked the mills to sell the Aluminium Ingot at a much higher price. The demand from the overseas market increased as the Italian downstream automobile industry’s demand surged. The rising energy cost and labor shortage caused an uprise in Aluminium Ingot prices in Germany. The price for Aluminium sheet Al1100 for FD-Koblenz (Germany) got settled at USD 11144/MT in the quarter ending June 2023.

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