Persian Gulf smelter update: Shipments in and out remain challenging
The war in the Persian Gulf is still fluid and the risk to production and shipments remain grave
The war in the Persian Gulf is still fluid and the risk to production and shipments remain grave
The International Aluminium Institute (IAI) has released its monthly report on primary production, showing global production at 6.317 million tons for January. This reflects a 0.27% month-on-month (m/m) increase in daily output.
Pace Industries plans to close two die-casting plants in Muskegon, Michigan, following the news of the planned closure of its Harrison, Arkansas plant, further reducing its US casting footprint.
Novelis has restarted casting operations at its Greensboro, Georgia, recycling facility after a March 1 explosion temporarily halted production.
Cheap aluminum scrap has not triggered widespread buying due to saturated demand, chemistry limits, and limited processing capacity.
The closure of Pace Industries' Harrison, Arkansas, die casting plant removes production capacity and a source of aluminum scrap streams typically generated by die casting operations.
February aluminum imports fell sharply despite strong Midwest premium incentives, leaving US inventories at roughly two weeks of demand and raising the risk of higher physical premiums amid tight supply and geopolitical uncertainty.
Arconic will construct a $131 million aluminum casting complex at its Davenport Works campus in Iowa, expanding ingot capacity with first metal targeted for Q3'27.
Novelis temporarily halted operations at its Georgia recycling and casting plant following a March 1 equipment explosion. No reported injuries.
A potential Strait of Hormuz disruption threatens Gulf aluminum exports at a time of tight US and European supply conditions.