August saw scrap demand rebound, trade and tariffs, and more

Scrap demand rebounded among recyclers in August, making signs of tighter availability more notable than they were under July’s weaker demand. Recycler demand increased while fewer respondents reported sufficient obsolete scrap, even as inventory drawdowns remained widespread. Price expectations also moved away from lower levels as export demand returned to the improving response category.

To learn more about our surveys and how you can participate, visit our page here.

AMU Summit coverage

Demand for aluminum in auto is shifting across key product groups. Ducker Carlisle said aluminum content per vehicle continues to increase even as North American vehicle production remains relatively flat. The panel of speakers pointed to several product groups and applications that could contribute to further content gains.

The heads of the Canadian and US aluminum trade associations urged leaders to cool off and return to tariff negotiations.

“There’s a lot of reaction to what is said, which doesn’t necessarily have a tone that is conducive to going back to the negotiating table,” said Jean Simard, president and CEO of the Aluminium Association of Canada. “We need to bring back the adults in the room for this to happen.”

Data center aluminum demand is reaching further into HVAC products as cooling needs rise alongside planned US capacity. John Mucci, vice president of sales at Kibar Americas, laid out that case.

Reviving primary aluminum production in the US will need to go hand in hand with revamping domestic energy policy, according to one panel of experts. “Until you address the energy side of this, primary production is going to be on hold,” Joe Quinn, executive director for the Center for Strategic Industrial Materials Securing America’s Future Energy (SAFE), said.

Aluminum service centers are taking on more processing once handled inside OEM plants. Kloeckner Metals says that shift is changing how service centers deploy capital and carry inventory. “They pull us into processing that we never thought we would be doing,” said Tom Sennett, executive vice president of aluminum and stainless. Kloeckner now delivers finished parts to some production lines. In other cases, it supplies near-finished parts while the customer keeps a proprietary final step.

Trade

The US Department of Commerce issued preliminary antidumping determinations covering van-type trailers and certain subassemblies from Mexico and Canada, directing US Customs and Border Protection to begin collecting cash deposits on covered imports.

Commerce also expanded a circumvention inquiry into disposable aluminum containers completed in Malaysia and Indonesia using Chinese-origin aluminum foil. The inquiry will determine whether Commerce should bring those imports within the scope of antidumping and countervailing duty orders covering disposable aluminum containers, pans, trays and lids from China.

Transportation

Daimler Truck North America plans to close its Portland, Ore., commercial truck manufacturing operations, while International Motors has agreed to sell its Springfield, Ohio, assembly facilities to Roshel. The announcements affect two established US commercial vehicle production sites.

General Motors’ Cadillac OPTIQ electric vehicle will feature a front bumper system made with Hydro CIRCAL, an aluminum alloy made of 75% post consumer scrap. The product is made at Hydro’s newest US-based recycling facility in Cassopolis, Mich.

Prices

In July, AMU published “Did aluminum markets price in peace too soon?” The article used data and events through July 8 to test whether falling prices and light financial participation had moved ahead of conditions around the Strait of Hormuz. One month later, we looked at how it all played out.

Investments

Italian aluminum die casting company 2A USA is investing $32 million to expand its manufacturing facility in Auburn, Ala. The project will increase production capacity for casting and machining complex and large aluminum components for the heavy truck industry.

The US Department of Defense is providing about $174 million in equity financing for Alcoa’s gallium production facility in Australia. The gallium plant is part of Alcoa’s Wagerup alumina refinery. It is expected to produce 100 metric tons of gallium metal annually.

Personnel

Kaiser Aluminum Corp. has named a new chief executive officer and president. Fred Stephan will take the roles effective Nov. 1, under the company’s long-term succession plan. Stephan succeeds Keith Harvey, who has led the company since July 31, 2020, and has served as board chairman since Jan. 1, 2025. Harvey will serve as a special adviser to Stephan through Oct. 31, 2027.