US primary aluminium production records a sequential growth of 2% for 4Q2022, but annual output declines by 28,000 tonnes

According to the U.S. Census Bureau survey, the United States domestic primary aluminium production in December 2022 grew by 2,000 tonnes or 3.23 per cent month-on-month, amounting to 64,000 tonnes. That brought the country's total output in the last quarter of the year to 190,000 tonnes, up by 4,000 tonnes or 2.15 per cent from 186,000 tonnes in the third quarter.

However, on a year-on-year calculation, the United States' production of primary aluminium in December 2022 stood at 18.99 per cent less than 79,000 tonnes.

In the second half of 2022, the United States' primary aluminium production was recorded at 376,000 tonnes, bringing the year's total amount of output to 861,000 tonnes versus 889,000 tonnes in 2021. That reflected a year-on-year decline of 3.15 per cent or 28,000 tonnes in the United States' 2022 primary aluminium production.

The country's average daily production of primary aluminium was 2,060 tonnes in December 2022, which represented a slight dip from the previous month compared to 2,070 tonnes despite a growth in the monthly output. On a Y-o-Y basis, the daily production in December 2022 edged a fall of 500 tonnes or 19.53 per cent from 2,560 tonnes.

The average daily production in 2022 was recorded at 2,360 tonnes – 3 per cent less than 2,440 tonnes a year earlier.

Total aluminum recovered from scrap in December 2022 also decreased on a month from 277,000 tonnes to 261,000 tonnes. Of that, 140,000 tonnes was recovered from new scrap, and 121,000 from old scrap. In 2022, total aluminium recovered from scrap was 3.39 million tonnes, 3 per cent more than in 2021.

The December 2022 average U.S. spot market price of primary aluminum ingot was $1.29 per pound, slightly more than in November 2022. The average cash price in December 2022 of primary aluminum ingot on the London Metal Exchange (LME) was $1.09 per pound, 3 per cent more than in the previous month.

Inventories of primary aluminum in LME-approved warehouses, including off-warrant inventories, in the United States decreased to 6,551 tonnes at the end of December 2022 from 9,103 tonnes at the end of November 2022. Inventories of secondary aluminium (North American Secondary Aluminum Alloy Contract) in LME-approved warehouses, including off-warrant inventories, in the United States decreased to 2,810 tonnes at the end of December 2022 from 3,737 tonnes at the end of November 2022.