At a meeting of the Aluminum Association, representatives of the US aluminum industry raised concerns about historically high aluminum prices and the resulting shrinking demand and substitution trends.
The US imposed a 50% tariff on all aluminum imports, and in February of this year, industry leaders emphasized the risks that high prices posed to aluminum demand. Moreover, the outbreak of war in the Middle East has exacerbated the situation.
The Aluminum Association stated that one of its concerns is the continued risk of material substitution and declining aluminum demand. Industry insiders indicated that some automakers plan to replace aluminum with steel in 2028 models, not to mention the threat posed by composite materials.
Despite the significant challenges facing the aluminum industry recently, industry leaders remain optimistic about the long-term outlook.