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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