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    March 3, 2023

    CRU Aluminum: Inflation Continues To Put Pressure On Supply Chain

    Written by Matthew Abrams

    Despite the economic concerns that lowered consumer sentiment towards the end of 2022, aluminum products demand has held up throughout the first three months of the year. A slowdown from the frenetic post-pandemic pace is apparent. Overall, though, both rollers and extruders comment that conditions are better than expected. The new order index as released by the Aluminum Association improved across the board, with extruded products seeing the largest increase, +25% from the previous index. This has prompted  some extruders who booked less contract metal in 2023 to start putting out inquiries for the spot billet market. However, inflation is stubborn, and more interest rate hikes are likely. This could further depress the housing market as new home starts and permits are tumbling. It might also eat into some of the momentum built up in new home sales over the last few months as a response to declining home prices.

    CRU

    Matthew Abrams

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