North America

In the final quarter of 2022, the Aluminium Ingot prices showcased an up-swinging trend in the US market owing to the limited availability of the product caused by continued tightness in the material's availability. According to manufacturers, the leading cause of this tightness was transportation bottlenecks forced by a lack of containers, shippers, and truck drivers, as well as long wait times at ports and other transportation hubs. In October, the headwinds such as US and LME will ban Russian Aluminium had surged the prices for Aluminium Ingot. However, in mid-Q4, the Aluminium Ingot prices edged down amidst the Thanksgiving holiday. Some market participants cite that the benchmark aluminium premium for Russian and non-Russian Aluminium continued to diverge, especially given renewed market speculation that the US may ban Russian Aluminium. Alcoa, the largest US aluminium producer, had warned investors that high energy and raw material costs and a drop in aluminium prices were putting pressure on margins.

Asia Pacific

In the Q4 of 2022, the Aluminium Ingot prices showcased a stagnancy in their price trend in the Chinese market as the pandemic continued to limit consumption on demand, and purchases were made in response to rigid demand. Although the Sichuan and Chongqing areas were promoting the process of production resumption, the overall supply had declined. Some smelters in Yunnan province increased production cuts early in the fourth quarter, while recovery in Guangxi and Sichuan provinces was slow. On the demand side, downstream operating rates fell short of expectations during the traditional seasonal highs in October and November. Nonetheless, the demand side maintained momentum with the fading of previous influencing factors and the policy boost. Aluminum billet conversion margins had fallen to discounts, while spot premiums for Aluminium Alloy Ingot prices also dropped and diverged across regions. During the traditional off-season, downstream consumption was low. Some aluminium processing plants intended to close early for the Chinese New Year.

Europe

In the European market, Aluminium Ingot prices showcased a declining trend in the fourth quarter of 2022 amidst production curtailment and fluctuating demand dynamics. In October and November, market participants were concerned about supply disruptions owing to the explosions at the Nord Stream Pipelines. Manufacturers claimed that the situation in Aluminium was dire; production activity was reduced by nearly 50%. Due to the weak consumer demand and a bleak economic backdrop, Hydro's Karmy and Hydro Husnes Aluminium plants in Norway curtailed production activity. Furthermore, the LME has concluded that it will not ban Russian Aluminium. In December, the ongoing decline in downstream demand, combined with the low-carbon differential, kept the Aluminium Ingot market under pressure. Few sellers and buyers were on scheduled holidays and will enter the market in the first or second week of January. As a result, the FOB Hamburg Aluminium ingot (99.9%) price settled at USD 3521/MT.

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