Primary unalloyed aluminum imports rise in April as strong demand, freight drive premium

Imports of primary unalloyed aluminum rose 31.6% month on month in April to 163,701 mt, as shipments from Canada were up 31.9% on the month at 140,088 mt, the most recent US Census Bureau data showed.

Shipments of higher purity from further origins like the UAE, Russia and India fell 68.6% year on year, as logistical issues and regional tightness due to premiums persisted. Replacement costs in the US are still seen well above current premium levels.

The same data showed total primary aluminum imports under HTS code 7601 were 324,917 mt, down 4.1% year on year.

Shipments of P1020 or greater purity from Canada reached 140,088 mt but were still down 12.98% year on year. Shipments by rail were down 48.66% year on year at 56,321 mt, while shipments by water were up 63.43% to 81,152 mt.

Canadian P1020 imports accounted for just above 85% of US unalloyed imports for April and 67.08% of the previous 10-year average for the same month.

Exports of P1020 from British Columbia to the US were only 5,426 mt, down 67.75% year on year, as no additional tons were seen shipped to Europe in April, according to Canada Statistics.

Imports of ingots from Australia ticked back up by 134.7% month on month. No imports from New Zealand were seen during the month, the imports accounted for some of the flow of high purity ingots, P0404, to the US West Coast.

The S&P Global Platts US Midwest premium reached a record high of 27.40 cents/lb on June 7, on tight supply and rising freight costs along with solid demand expectations through the summertime.

The US Commerce Department has officially set a June 28 start date for the proposed Aluminum Import Monitoring and Analysis system and clarified certain licensing requirements for the program.

Imports of value-added products, such as billet, foundry alloys and slabs, were up 34.06% year on year in April, as demand continued to firm. Shipments from Canada, the UAE, Russia and Bahrain rounded out the top four spots as April totaled 161,216 mt.

Canadian exports of billet, slabs and foundry alloys to the US totaled 105,545 mt, up 79.52% 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 that were set in 2020. Year-to-date imports of slabs from Canada were up just over 61% as the tightening scrap market has forced some mills to go out into the spot market for more primary and slabs to keep the chemistry mix of products.

Imports of value-added products from Russia continued to flow into the US, up just over 34% year on year through April.

The Aluminum Association said Canadian primary production in May totaled 277,570 mt, up 3.8% month on month, while US primary production was 75,895 mt, up 4.1% month on month. The demand for value-added products has outpaced even the increase of imports seen so far in 2021.

Platts US spot 6063 billet upcharge hit 22 cents/lb on April 15, a record high, and has held there since.