For the Quarter Ending March 2024
North America
The first quarter of 2024 witnessed a significant increase in prices for Aluminium Wire (Copper Cladded) across North America, driven by influential factors that shaped the market dynamics. This surge can be attributed to heightened demand from sectors such as construction and automotive, spurred by economic improvements. Furthermore, the growing emphasis on clean energy sources, particularly within the electric vehicle industry, further bolstered the demand for Aluminium Wire (Copper Cladded).
On March 25, Century Aluminium announced its approval to receive up to $500 million from the U.S. Department of Energy's Office of Clean Energy Demonstrations under the Industrial Demonstrations Program, a part of the Bipartisan Infrastructure Law and Inflation Reduction Act. This funding aims to support Century's Green Aluminium Smelter Project, demonstrating large-scale decarbonization solutions for energy-intensive industries moving toward achieving net-zero emissions. The allocation will facilitate the construction of the first new primary aluminium smelter in the U.S. in over four decades, enhancing the domestic primary aluminium industry and bolstering national economies.
In the United States, where substantial price fluctuations were observed, Aluminium Wire (Copper Cladded) prices increased during the first quarter of 2024, attributed to the improving economic landscape and the gradual easing of inflationary pressures. The positive price trend between the first and second halves of the quarter indicates a sustained growth pattern for Aluminium Wire (Copper Cladded) prices.
Asia-Pacific
In the first quarter of 2024, the pricing environment for Aluminium Wire (Copper Cladded) in the APAC region remained stable overall. The market saw moderate supply levels, driven by increased production from overseas mills. Demand for Aluminium Wire slightly increased, particularly in the construction sector, driven by growth in neighbouring and overseas markets. However, cautious buying behaviour persisted due to decreased demand resulting from stimulus measures and a more accommodating monetary policy. In South Korea, there was a slight increase in supply and demand for Aluminium Wire. The construction and housing sectors showed a slight uptick in demand, while the automotive industry experienced a decline in sales. Overall, the market in South Korea remained stable. Looking at the price trends, there was a marginal rise in prices for Aluminium Wire in both China and Vietnam. This can be attributed to the increased production from overseas mills and a slight uptick in demand. In China, prices increased by 0.8% compared to the previous month, while in Vietnam, prices rose by 0.6%. In the South Korean market, prices for Aluminium Wire showed an upward trend, increasing by 0.7% compared to the previous month. This was driven by slightly higher demand from the construction and housing sectors. In conclusion, the pricing environment for Aluminium Wire (Copper Cladded) in the APAC region during the first quarter of 2024 was stable overall, with slight increases in prices in China, Vietnam, and South Korea. The market saw moderate supply levels and cautious buying behaviour due to decreased demand.
Europe
In the first quarter of 2024, the Europe region experienced a notable increase in prices for Aluminium Wire (Copper Cladded), primarily attributed to a reduction in the supply, particularly from a major global feedstock supplier, leading to concerns about potential material shortages. Additionally, there was a significant surge in demand from downstream industries, especially in the construction sector, exerting upward pressure on prices. Notably, in Germany, the price fluctuations for Aluminium Wire (Copper Cladded) displayed an overall positive trend compared to the previous quarter, despite a slight decline observed in the second half of the quarter when contrasted with the same period in the previous year. To summarize, the first quarter of 2024 witnessed heightened prices for Aluminium Wire (Copper Cladded) in the Europe region, influenced by a reduced supply and increased demand from downstream industries. In Germany, prices reflected an overall positive trend, notwithstanding a minor decline in the latter part of the quarter. The US and other nations have recognized the critical status of copper through the creation of the Minerals Security Partnership and their commitment to advancing critical minerals projects adhering to ESG standards.
For the Quarter Ending December 2023
North America
In the last quarter of 2023, the North American market for Copper Cladded Aluminum Wire exhibited a blend of trends, indicating an overall state of stability. Initially, prices in the U.S. spot market for this type of wire saw a decrease, attributed to diminished demand from the automotive industry and heightened macroeconomic uncertainty in the early part of Q4. In the middle of Q4, aluminum prices surged due to insufficient stock accumulation during the consumption off-season. Factors such as tighter spreads and potential inventory squeezes played a role in driving the increase in restocking activity.
The decision of the Federal Reserve to maintain interest rates signaled a recovery in the U.S. economic market, prompting substantial orders from both domestic and international buyers. In December, the consistent trend in pricing for Copper Cladded Aluminum Wire reflected reduced demand during the winter and holidays. This situation was further compounded by disruptions in trade routes, including those through the Panama Canal and the Red Sea, caused by drought and rebel attacks.
Supply concerns originating from Guinea, triggered by an oil depot explosion, coupled with adverse weather conditions, resulted in diminished demand from the construction sector, leading to a slowdown in U.S. manufacturing activity. Towards the end of the year, there was evidence of seasonal strength and increased restocking activity driven by attractive prices.
Asia-Pacific
In the final quarter of 2023, prices for Copper-Clad Aluminum Wire in the South Korean market exhibited initial stability, primarily driven by limited inquiries from the power and distribution sector. Various factors contributed to this stability, including concerns related to the banking crisis, the imminent US debt ceiling, stagnant domestic consumption data, limited policy stimulus, and a gloomy global economic outlook. Despite reduced demand from downstream industries, the supply of Copper-Clad Aluminum Wire remained robust, leading to an increase in local inventory levels. The upswing in Bauxite inventory was a result of heightened imports from Guinea, propelled by increased mining activity and sustainability initiatives in collaboration with the West African LNG Group. However, downstream automotive manufacturing industries experienced a slowdown due to intensified competition from Chinese producers. In November, prices for South Korean Copper-Clad Aluminum Wire surged due to constrained supply and heightened demand from the automotive and construction sectors. Disruptions in the Panama Canal route and restricted imports of essential materials like Bauxite contributed to the scarcity. December witnessed consistent prices for Copper-Clad Aluminum Wire, influenced by decreased demand during the winter and holiday seasons. Trade route disruptions, adverse weather conditions, and a slight decline in Bauxite supply further posed challenges to the market, resulting in a slowdown in manufacturing activity across South Korea. The quarterly price of Aluminium Wire (Copper Cladded) FOB Busan in South Korea for Q4 2023 settled at USD 6239/MT.
Europe
In the last quarter of 2023, the European market for Copper-Clad Aluminum Wire experienced a modest upward trend influenced by various factors affecting prices. Challenges in the supply of this type of wire were observed in the German spot market, attributed to lackluster performance amid economic uncertainties, resulting in limited supply levels. Significant factors contributing to these dynamics included European interest rate expectations and fluctuations in the non-ferrous metals market. Hydro Energi successfully secured a long-term power purchase agreement with Alpiq for 1.18 terawatt-hours of energy spanning from 2024 to 2032. This agreement supports Norsk Hydro's efforts to expand its electricity supply, with a particular focus on renewable sources. In November, Copper-Clad Aluminum Wires in Germany experienced a price increase due to a combination of low supply and heightened demand from the automotive and construction sectors. Optimistic market sentiment prevailed, driven by factors such as Bauxite scarcity, disruptions in the Panama Canal, and robust demand from downstream industries. However, by December, prices for Copper-Clad Aluminum Wire stabilized as winter and holiday periods led to a decline in demand. This was compounded by trade disruptions and reduced demand from the construction sector due to adverse weather conditions. The supply of feedstock faced challenges stemming from an oil depot explosion in Guinea, contributing to manufacturing slowdowns across Germany.
For the Quarter Ending September 2023
North America
In the third quarter, the US Aluminum Wire (Copper Cladded) market saw significant changes. Initially, the prices rose due to the US Federal Reserve Board's interest rate hike aimed at curbing inflation by the end of the year. This led to increased demand in the renewable energy sector, especially in the photovoltaic system industry across the USA. Alcoa, a key player in the US Aluminum sector, promoted energy transition in Brazilian mills and resumed mining in Western Australia, boosting the domestic market. Tesla's electric vehicle sales in the automotive sector also drove up Aluminum consumption. However, supply constraints for the European Aluminium Wire (Copper Cladded) persisted due to reduced local mine production and export restrictions from Indonesian suppliers. Prices stabilized in August as the automotive sector remained steady, but market uncertainties, high inventory levels, and rising interest rates made buyers cautious. Competition from Chinese producers affected automotive demand, while the renewable energy sector held promise for Aluminum Wire (Copper Cladded) demand. Anticipated adverse weather conditions could impact production costs soon.
APAC
In Q3 2023, the South Korean Copper Cladded Aluminum Wire market saw significant price fluctuations, marked by ups and downs. In July, prices surged due to reduced manufacturer offers and weakened purchasing, driven in part by high PRN packaging material prices and low aluminum recycling rates, impacting aluminum durability. This led to predictions of reduced domestic demand and increased overseas recycling. Subsequently, domestic prices initially declined, mirroring India's production drop due to weak demand. Global economic uncertainty and high import tariffs on raw Aluminum further pressured prices, leading to cautious purchasing. Rising US interest rates negatively affected export demand, particularly in automotive manufacturing. In the mid-quarter, South Korean prices rebounded due to steady demand from the power and distribution sectors. Despite the recovery, concerns lingered about the US debt ceiling, slow domestic consumption, limited policy stimulus, and a gloomy global economic outlook. Stable supply levels increased local inventory, while bauxite imports from Guinea supported sustainable mining. Demand was weak in the construction sector but grew in the battery foil and electrical/electronic sectors. Short-term expectations indicated a positive trend in aluminum prices with a focus on downstream consumption intensity. The market demonstrated resilience amid ongoing challenges.
Europe
The German Aluminium Wire (Copper Cladded) market experienced stability in the third quarter. Initially, prices surged due to improved economic conditions and lower local inventories. Indonesian export restrictions tightened supply and raised spot market prices. A contract with Indian rail company Alston boosted demand as parts were to be manufactured in France, leading to higher export quotas from Germany. The European market is contemplating lifting the ban on Russian Aluminium imports, thanks to stabilization in supply and demand, aided by Russia's largest Aluminium producer, Russell. Alcoa's mining permit for its Aluminium Wire (Copper Cladded) mine in Western Australia and government recognition of Aluminum's importance further supported the market. Domestic supply remained tight due to the Indonesian mining ban and reduced German factory activity. The electric vehicle sector's recovery and a 0.25% rate hike stabilized inflation, fostering demand. In August, prices remained steady due to ample Bauxite supply and limited local orders. Downstream industries, including shipbuilding, clean energy, and automotive, showed promise, with companies like Volvo and Tesla expanding production across Europe. Despite economic uncertainties and cautious buyers, the Aluminium Wire (Copper Cladded) market is expected to witness increased demand in the upcoming months as production rates rise and economic conditions stabilize.
