US Aluminium Ingot Price Inches Upward in Mid-June Amid Improved Terminal Demand

In the US market, the price of Aluminium Ingots in the US market shows a bullish trend owing to the rising demand from downstream automobile and packaging industries in the ongoing second week of June. Aluminium Ingot manufacturing and recycling has become a bigger concern in the US market as it plays a vital role in promoting the motive of Green Steel and Aluminium production, which was discussed in the recent ‘Harbor Aluminum Summit’ held in Chicago on June 9. Additionally, the cost of fuel and energy cost have shown an uprise along with the price increase of raw materials such as Bauxite. The rising energy cost has raised the idea for Aluminium Ingot manufacturers to shift to hydro or solar plants as substitutes for non-recyclable fuels such as natural gas and coal amid increasing energy costs. Jamaica, a major producer of Bauxite has also put its mines back on track with the help of a partnership with US mining company, Noranda Bauxite.

In recent weeks, the feedstock Aluminium Ingot prices are showing an increasing trend as the Jamaican mines are put back on track with the help of a Public-Private partnership with a major US mining company, Noranda Bauxite which was the parent company for the Jamaican New Age Aluminium mine in St. Ann, Jamaica. Additionally, the production cost of Aluminium Ingot has been raised on a week-on-week basis due to the uptick in energy and natural gas prices. Additionally, the Aluminium Ingot supply remained at a higher edge as the exchange warehouse remained overstocked from the Russian and Indian suppliers. Moreover, the ‘Harbor Aluminum Summit’ held in Chicago on June 9, was focused on improving the production quality of Aluminium Ingot. The summit was mainly focused on the recycling of Aluminium Beverage Cans as the recycling process is said to be cheaper and produces less carbon emission concerning primary Aluminium extraction and refining in the smelters. Meanwhile, the demand for recycled Aluminium Ingot from the packaging sector has increased as industries are eagerly trying to replace plastic with Aluminium. These uplifting factors of the increase in Aluminium Recycled Ingots and the downstream demands favor the bullish sentiments of Aluminium Ingot in the US spot market.

According to ChemAnalyst, the Aluminium Ingot market will witness an upward momentum in the upcoming weeks due to the rising demand from the downstream automobile sector and infrastructure development. The summit led to the theory of more dependency on recycled Aluminium in the future for infrastructure development and moving toward hydro or solar plants for better production by tackling increased energy costs. As a ripple effect, the Aluminium Ingot prices are anticipated to showcase an uptick in the price trend.