CRU aluminum news roundup

Oct. 3 was marked by heavy profit-taking after the LME price reached a high of $2,688/mt in early trading. The price has since stabilized and is actually moving higher again at the time of writing. The focus will be on the US non-farm payroll report for September. The market expects slightly fewer jobs created in September (140,000) vs. August (142,000).

US sets tariffs on aluminum from 14 countries

The US Commerce Department has determined final anti-dumping (AD) and anti-subsidy (CVD) duties on aluminum extrusions from China, Colombia, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, South Korea, Taiwan, Thailand, Turkey, the United Arab Emirates, and Vietnam. The AD levies range from 2.02% to 376.85% and CVD tariffs from 1.44% to 168.81%.

“These final determinations are another key step in remedying the harm caused by illegal dumping by foreign producers of aluminum extrusions, many of which have also benefited from unfair subsidies,” said lawyer Robert DeFrancesco, who represented the joint petitioners, the US Aluminum Extruders Coalition and multi-industry United Steelworkers (USW) union.

The antidumping and countervailing duty cases were filed on behalf of the US Aluminum Extruders Coalition, a coalition of 14 leading aluminum extruders in the US. The final say rests with the US International Trade Commission (ITC).

How is this case affecting the market? In August, the total volume of US imports of bars, rods, and profiles or pipes and tubes reached 24,000 mt, reflecting an 11% m/m increase. Interestingly, imports of these products from the 14 countries involved in the ongoing trade case have not shown any significant change during the same period. Additionally, the share of imports compared to domestic production has remained steady. Together, these factors suggest that the effects of the trade case have not yet had a noticeable impact on the market.

US shipments of extruded shapes down more sharply in August

The latest shipment report by the US Aluminum Association also shows weaker trends for August. According to the association, shipments of extruded products in North America totaled 369 million pounds in August, representing a decline of 4.8% y/y and down 5.5% for the year-to-date (YTD) period up to August. More significantly, this is weaker than the decline of 0.6% reported in July 2024 vs. July 2023.

Overall, the sector has been in contraction mode since June 2022, with the trend looking weaker recently. This comes in contrast with rolled products as shipments have shown y/y growth consistently every month since August 2023. However, the recovery remains fragile, with the latest report for August showing a small growth of 1.6% y/y. This is down from the 4% y/y growth reported in July and much less than the peak of over 14% seen in February this year.

Rio Tinto completes acquisition of Mitsubishi’s stake in Boyne smelter

Rio Tinto’s previously announced acquisition of Mitsubishi Corp.’s (Mitsubishi) 11.65% interest in Boyne Smelters Limited (BSL) was completed on Sept. 30. BSL owns and operates the Boyne Island aluminum smelter in Gladstone, Australia. Following completion of the transaction, Rio Tinto’s interest in BSL is now 71.04%.

Rio Tinto added that previously announced acquisitions by Rio Tinto of Sumitomo Chemical Co.’s (SCC) 2.46% stake in BSL, and SCC’s 20.64% interest in New Zealand Aluminum Smelters (NZAS) – which owns and operates the Tiwai Point aluminum smelter in New Zealand – continue to advance through different conditions that must be met.

The acquisition of Mitsubishi’s stake in BSL was for an undisclosed price, as is also the case for the agreed acquisitions of SCC’s stakes in BSL and NZAS.

Hydro opens new Cassopolis, Mich., technology center

Hydro celebrated the expansion and relocation of its technology centre from Zeeland, Mich., to Cassopolis, Mich. The new technology center is located next to the aluminum recycling plant Hydro opened in November last year. The new center will allow Hydro to meet the growing demand for low-carbon aluminum products in the US with the appropriate technical resources.

Accredited by the American Association for Laboratory Accreditation, the new technology center will serve as the only testing laboratory in the Hydro system capable of providing third-party certified testing for strength, corrosion resistance, and other aspects of aluminum performance.  In addition to this center, Hydro also operates a technology center in Troy, Mich., supporting Hydro’s extrusion plants throughout North America.

Editor’s note: This article was first published by CRU. To learn more about CRU’s services, click here.