Aluminium Sheet Prices Soar in US and Germany Amid Shortages and Aerospace Boom

The Aluminium Sheet market has shown significant growth in both the USA and Germany during August, driven by various factors including raw material shortages, currency fluctuations, and increased demand from key industries.

In the US, Aluminium Sheet prices rose by 2% in August, primarily due to tightening supply of key raw materials. The London Metal Exchange (LME) Aluminium price reached a five-week high on August 3, influenced by alumina shortages and a weakening US dollar. Alumina inventories in Shanghai Futures Exchange (SHFE) warehouses plummeted 30% over three weeks, with futures hitting a near three-month high on August 20. The anticipated interest rate cut by the Federal Reserve in September further pressured the US dollar, making dollar-denominated Aluminium Sheet more attractive to buyers.

The global alumina and bauxite supply constraints have pushed up Aluminium Sheet production costs, supporting market prices. Alumina supply shortages are particularly acute, with inventories in major production areas nearing historic lows. This tight supply situation for raw materials is likely to continue supporting Aluminium Sheet prices in the near term.

Incorporating into the market dynamics, the US International Trade Commission (USITC) found on August 15, 2024, that eliminating current anti-dumping and countervailing duty orders on ordinary alloy Aluminium Sheet from China could result in a reoccurrence of significant harm. Therefore, these trade regulations will continue to be enforced, potentially impacting the supply and pricing of domestic Aluminium Sheet.

Meanwhile, in Germany, the Aluminium Sheet market experienced a more pronounced increase, with prices rising 6.5% in August. This surge was largely attributed to growing demand from the aviation sector, particularly driven by airBaltic's expansion plans for A220-300 aircraft. As the largest A220 customer in Europe, airBaltic's order for an additional 10 A220-300 aircraft, bringing their total order to 90, signals robust demand for Aluminium Sheet in aircraft manufacturing.

The A220 aircraft's extensive use of Aluminium Sheet in its construction makes it a key indicator of demand within the European market. The aircraft's focus on environmental performance, including lower fuel burn and CO2 emissions, aligns with the industry's sustainability goals, potentially driving increased demand for lightweight materials like Aluminium Sheet.

Further bolstering the European Aluminium Sheet market, UAC, a leading global manufacturer of aerospace structural components, commissioned a new Aluminium billet casting line in Satu Mare, Romania. This strategic investment enhances UAC's capability to produce aerospace-grade alloys, catering to customers across Europe and globally, and strengthens its position in the aerospace extrusion industry.

As per ChemAnalyst, the Aluminium Sheet market is anticipated to maintain its upward trajectory in both the USA and Germany. The continued raw material supply constraints, coupled with growing demand from the aerospace sector and other industries seeking lightweight, sustainable materials, are expected to support Aluminium Sheet prices. However, market participants should closely monitor global economic conditions, trade policies, and technological advancements in alternative materials that could influence the Aluminium Sheet market dynamics in the coming months.