Increasing demand for beverage cans leads to multiyear high US aluminium can sheet imports in 2Q2022

The United States imports of aluminium can body sheet hit the highest since at least 1998 in the second quarter of 2022 ended June 30, driven by a strong demand for beverage cans and increased mill investments in Asia targeting North American consumers.  

As per the data released by the US Department of Commerce, the imports in Q2 2022 saw a surge of 26,900 tonnes or 46.7 per cent Y-o-Y from 57,600 tonnes to 84,500 tonnes, bolstered by higher shipments from Thailand and South Korea, homes to large rolling mills operated by UACJ and Novelis, respectively.

South Korea provided 30,600 tonnes of aluminium can body sheet to the US in the second quarter, threefold higher than 8,600 tonnes during the same period last year. Thailand was the second highest exporter, raising shipments by 48 per cent Y-o-Y to 20,500 tonnes to the US.

Novelis, an American industrial aluminium company specialised in rolling and recycling, has been investing heavily in its South Korean operations since 2011, with a $400 million expansion programme at Yeongju and Ulsan plants and planned for further expansion in February.

China was the third largest supplier of can sheet to the US in Q2 2022, providing 42 per cent higher than a year earlier. As per the data, China exported 13,600 tonnes of can sheet to the US during the said period. China’s can sheets are exempt from heavy antidumping duties, unlike alloy sheet, foil and finished extrusions.

The fourth highest can sheet supplier to the US in Q2 was Japan, shipping 10,200 tonnes.

However, the United States’ domestic can sheet production capacity is likely to grow significantly over the next few years with investment in greenfield mills by Novelis and Ball, which might lead to a sharp cut in imports.

The United States was largely self-sufficient on can sheet until the domestic plants shifted their focus to higher value products such as automotive body sheet, and that was when the international players grabbed the US can sheet market. But thankfully, packaging firms like Ball, Crown and Canpack are now taking interest in domestic market and investing in new can sheet plants.

According to Federal Reserve Economic Database, the US industrial production by the soft drink and ice market grew by 6 per cent in second quarter compared with a year earlier, while retail sales of beer and wine grew by 3 per cent in June at $5.9 billion.