US primary aluminium production drop continues till September 2023

According to the latest data from the US Geological Survey, the United States' primary aluminium production in September 2023 stood at 60,000 tonnes, marking an extended month-on-month dip of 2,000 tonnes or 3.23 per cent.

In August 2023, the United States' primary aluminium output had also seen a fall of 2,000 tonnes month-on-month to 62,000 tonnes.

On a year-on-year calculation, the United States' primary aluminium production in September 2023 registered a fall of 1,000 tonnes from 61,000 tonnes.

The average daily production in September 2023 was 1,990 tonnes, negligibly down from 2,000 tonnes in August. On an annual basis, the daily average output edged a drop of 1.49 per cent from 2,020 tonnes.

USGS data showed that in September 2023, the total aluminium recovered from scrap was 274,000 tonnes – 2.14 per cent or 6,000 tonnes less than 280,000 tonnes. Of the total recovery, 151,000 tonnes was recovered from new scrap and 123,000 tonnes from old scrap.

The September 2023 average US spot market price of primary aluminium ingot was $1.19 per pound, essentially unchanged from that in August 2023 and 5% less than in September 2022. The average cash price of primary aluminium ingot on the London Metal Exchange (LME) was $0.99 per pound, slightly more than that in August 2023 but less than that in September 2022.

Inventories of primary aluminium in LME-approved warehouses, including off-warrant inventories, in the United States were 8,645 tonnes at the end of September 2023, more than double (138 per cent) than at the end of August 2023. Inventories of secondary aluminium (North American Secondary Aluminium Alloy Contract) in LME-approved warehouses, including off-warrant inventories, in the United States were 620 tonnes at the end of September 2023, unchanged from that at the end of August 2023.

USGS data also demonstrated that total imports of aluminium for consumption for the first nine months of 2023 decreased by 12 per cent compared with those in the same period of 2022.