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International trade

Canadian primary aluminium, a strategic metal, is at the origin of a large North American industrial chain at the heart of international trade and world geopolitics.

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How Canadian aluminum saves energy and powers American jobs

Replacing Canadian aluminum with domestic supplies could threaten 700K jobs and require the addition of the equivalent of four Hoover Dams, at a cost of $100 billion, to meet the demand.

Canada’s clean energy makes it the ideal aluminium provider, offering the U.S. a reliable, low-carbon source. Onshoring would mean massive costs, strained resources, and a step backward for sustainability.

Learn more: How Canadian aluminium saves energy and powers American jobs

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U.S. reliance on
Canadian aluminium

The U.S. relies on Canada for 75% of its imported primary aluminium. This represents more than 60% of the nation’s annual consumption, underscoring Canada’s indispensable role in ensuring the vital U.S. aluminium supply chain.

The aluminum supply chain creates jobs for Americans. For every 3.9 metric tons of Canadian aluminum sent to the U.S., one job is supported. In total 700,000 direct, indirect, and induced jobs in the U.S. aluminium industry.

Learn more: Visual Capitalist: U.S. Reliance on Canadian Aluminum

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5 ways Canadian aluminum gives the U.S. military its edge

In 2024, the U.S. imported over 2.7 million tons of Canadian primary aluminum, more than half of its annual primary consumption.

Aluminum’s many uses provide the U.S. military with a critical technological edge. Canada has been a reliable contributor to U.S. national security for over 100 years.

Aluminum’s wide range of mission-critical applications makes it essential for maintaining U.S. military superiority.

Learn more: 5 WAYS Canadian Aluminum Gives the U.S. Military its Edge.

Traded in a commodity market, and attracted by the arbitrage of regional premiums, the metal is called upon according to the rules of supply and demand to meet the needs of the major regional consumption blocks that are North America, Europe and Asia.

Offer

Global production of primary aluminium in 2024 is estimated at over 72 million tonnes.

The global aluminium market has changed over the past 20 years. China, non-existent on the aluminium planet in 1996, now produces 59% of world production, followed by the Middle East (9%), India (6%) and Russia (6%) and Canada at 5%. Thus, 85% of global production is concentrated in just five producing regions, giving Canada a key position in the global market.

Demand

Strategic material of the future in a decarbonized world, primary aluminium will experience a 19% growth in demand between 2023 and 2050.

The demand will come mainly from the transport sector (24%), followed by the construction sector (22%), the electrical sector (14%), and the machinery and equipment sector (11%).

Primary and recycled?
Recycled aluminium will be used increasingly and combined with primary metal to meet the growing demand and the need to reduce the environmental footprint through circularity. Canada will be at the forefront with its remelting capacity in its primary production plants.

Price

Aluminium: a commodity traded at the LME

The London Metal Exchange (LME) is the global trading centre where industrial metals, including aluminium, are traded. The LME reflects the state of the global market, taking into account inventories and global production data.

The LME price plus a regional premium determines the base price of unwrought aluminium for a given market.
Regional premiums reflect not only regional market balance, but also local market conditions as well as payment terms, applicable tariffs and delivery charges. There are 3 regional premiums: Midwest Premium (North and Central America), CIF MJP Premium (Southwest Asia, Japan/Korea, Middle East) and Metal Bulletin Premium (Europe and Africa).

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