Motor Vehicle Production, Construction Spending to Drive Growth in US Aluminum Demand

CLEVELAND, Oct. 7, 2021 /PRNewswire/ — US demand for aluminum in volume terms is forecast to see average annual gains…

CLEVELAND, Oct. 7, 2021 /PRNewswire/ — US demand for aluminum in volume terms is forecast to see average annual gains of 5.9% through 2025, according to Aluminum: United States, a report recently released by Freedonia Focus Reports. Gains reflect a pandemic-depressed 2020 base; annual increases of less than 1.0% are expected between 2019 and 2025. Growth will be driven by the increasing production of motor vehicles, along with higher aluminum loading rates per vehicle due to a shift in consumer preference toward larger vehicles, such as SUVs and crossovers. A 1.2% yearly increase in real US construction expenditures will support expanding shipments of aluminum building products, further spurring gains. Finally, continued economic growth will support demand for – and by extension, shipments of – consumer products featuring aluminum packaging or aluminum components. Despite these positive trends, aluminum will continue to face competition from other materials – such as copper, steel, glass, and plastics – across each of its markets, restraining faster gains. Demand is expected to grow 13% in 2021, rebounding from the pandemic-driven decline in 2020. However, US tariffs on imported aluminum will continue to limit even faster gains.

Production of aluminum in the US is forecast to increase 2.5% yearly in volume terms through 2025. Bolt-on additions will help supply the increasing demand in the US. Primary aluminum producers have also begun to restart idled production lines to take advantage of the favorable pricing environment provided by the tariffs on aluminum imports.

These and other key insights are featured in Aluminum: United States. This report forecasts to 2021 and 2025 US aluminum demand and production in metric tons. Total demand is segmented by market in terms of:

  • transport
  • containers and packaging
  • building and construction
  • electrical
  • other markets such as consumer durables, machinery, and cookware

Total demand in nominal US dollars at the producer level is also forecast to 2021 and 2025.

Total production is segmented by type as follows:

  • primary
  • secondary

To illustrate historical trends, total demand, total production, the various segments, and trade are provided in annual series from 2010 to 2020.

More information about the report is available at:

https://www.freedoniafocusreports.com/Aluminum-United-States-FF65010/?progid=91541 

About Freedonia Focus Reports

Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Materials & Chemicals reports can be purchased at Freedonia Focus Reports or MarketResearch.com.

Analysis is intended to guide the busy reader through pertinent topics in rapid succession, including:

  • total historical market size and industry output
  • segmentation by products and markets
  • identification of market drivers, constraints, and key indicators
  • segment-by-segment outlook in five-year forecasts
  • a survey of the supply base
  • suggested resources for further study

Press Contact:

Corinne Gangloff

+1 440.842.2400

cgangloff@freedoniagroup.com 

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SOURCE The Freedonia Group