Aluminum Needs

Investment Analysis Clubs Destiny Solutions Corporation
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https://archive.fo/BL0jp

“The US aluminum industry continues to place big bets on the future of aluminum production, fabrication and recycling in the US,” Johnson said in a newsletter. He added investments have picked up since a “a relatively dormant period during the peak of the COVID-19 crisis in 2020.”…As examples, Johnson referenced project announcements from Novelis, Commonwealth Rolled Products and Norsk Hydro…

“Aluminum is the fastest growing material used by automakers and is expected to grow to 514 lb per vehicle by 2026, up more than 25% in just 10 years,” Johnson said. “Aluminum demand is also increasing in the packaging and building markets. Robust trade enforcement efforts by the government and industry have also driven investment in recent years.”…

Johnson said the flurry of capital expenditures follow a larger trend of growth in the US aluminum industry over the last 10 years, with “more than $4 billion in US manufacturing to support growing demand for the metal.”

My aluminum Monthly/Weekly charts:

https://mobile.twitter.com/peregreine/status/148235821742654…

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Aluminum demand is also increasing in the packaging and building markets

Light weight makes aluminum attractive in the auto markets where improved gas mileage is a goal. Didn’t the Ford F-150 convert to aluminum beds a year or so ago. More of the same.

We hear there were shortages of beverage cans during Covid. They are popular for home use. Aluminum bottles are showing up. Excellent recycling has to be a plus. But displacing what? glass? Some say beer in glass bottles has better flavor. Steel beverage cans are rare.

Is aluminum replacing steel in food containers? More aluminum trays for TV dinners and take home pies, cakes?

In construction, new homes are hot. Aluminum siding? Vinyl is probably cheaper but less recycling. But who knows what recycling will be 40 years from now. Short term improvement maybe but doubtful growth potential.

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