Aluminium alloy ingot prices witnessed a mixed trend in late February with Asian prices falling while prices in the USA rose. In China, prices declined due to weak demand in the market. On the other hand, prices in the USA rose due to supply constraints amidst driven by ongoing tariff related market shifts.

In China, market participants reported that current trends for aluminium alloy ingot prices have remained subdued due to persistent weak demand. Prices in the region declined by 0.4%, with market sentiment tempered by an oversupply.

Although resumption of work across upstream and downstream sectors has alleviated some procurement pressures for aluminium scrap, yet overall demand remains soft. This has resulted in a stable gap between primary metal and scrap prices, contributing to a rangebound aluminium alloy ingot price.

A cautious sentiment prevails regarding the immediate future of aluminium alloy ingots in China. While supply is expanding, the potential for any significant price climb is curtailed by persistent sluggish demand. Downward movements in prices are also softened by rising scrap costs, ensuring that price fluctuations stay within a limited band that reflects ongoing market uncertainty and competitive pressures.

US aluminium alloy ingot prices witnessed a rise of 1.5% in the final week of February. Supply constraints and tariff-driven market shifts are driving the current market prices. Domestic production challenges, including smelter closures, have contributed to tightening supplies while buyers contend with rising input costs that pressure overall profitability in the sector.

Industry leaders in the U.S. have expressed concern regarding proposed trade measures on domestic output of aluminium alloy ingot. Alcoa, a prominent producer recently commented that tariffs alone would not suffice to boost local production, citing challenges such as high electricity costs that have led to a reduction in output.

Recently Russia expressed readiness to supply aluminium to the USA and help them on additional smelting capacity. But with the current geopolitical landscape after the new US administration came to power, the outcome remains uncertain. If tariffs are implemented on other primary aluminium suppliers to the USA, it can be an opportunity for increased Russian aluminium alloy ingot imports.

Overall, the U.S. market for aluminium alloy ingot is expected to fluctuate in a range. Moderate pressure from rising scrap costs and supply constraints is expected to balance out the limited recovery in downstream demand. With tariff uncertainties continuing to influence pricing, ChemAnalyst anticipates that aluminium alloy ingot prices in the USA will experience modest fluctuations.