The latest data from the Aluminium Association of Canada reveals that Canada's exports of standard P1020 aluminium to the United States have decreased in July from the previous month. The Association estimates the exports to drop by about 30 per cent at the end of the month. So, from 155,000 tonnes in June, Canada's exports to the US in July are likely to come in at 112,000 tonnes.
This downward trend started in June with a month-on-month fall of 16 per cent. So, over the last two months, the total downfall in primary aluminium exports from Canada to the US is estimated to cross 40 per cent, indicating a recovery in demand for Value Added Products (VAP).
Production at aluminium smelters in North America shifted from Value Added Products to P1020 during the initial months of 2020 in response to lower downstream demand in the automotive sector due to the COVID-19 outbreak. However, now the demand for aluminium products is rebounding, allowing Canadian smelters to rebalance their production.
“We are seeing a clear shift as production rebalances after producers shifted from value-added products as a result of the economic reactions from COVID-19,” said Jean Simard, President and CEO of the Aluminium Association of Canada.
“Producers are beginning to now shift toward more value-added products (VAP) and away from the commoditygrade ingot that was being exported as a response to reduced demand from the automotive sector as a result of COVID-19,” he added.
Simard also said, “There is clearly no surge in Canadian aluminium production or exports and now is the time for Canada and the United States to work closely together to maximize the benefits of the new CUSMA trade agreement, to help drive the economic recovery. Any move to introduce measures such as tariffs by the U.S. government will only increase the prices being paid by North American manufacturers and the consumers who buy their products, while making room for metal from other countries like Russia and China.”
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