Downward Pressure On NHT Autosheet Prices to Continue in 2020
November 20, 2019
- US conversion prices for aluminum automotive sheet appear to have diverged, with NHT autosheet conversion prices declining and HT autosheet conversion prices remaining relatively stable.
- What has changed? The downward pressure on NHT automotive sheet has resulted from the increased supply of 5052 into the US market from offshore suppliers and subsequent destocking occurring in the supply chain.
- Additionally, the demand for aluminum automotive sheet has slowed due to the recent GM strike and lower US light vehicle production rates; coupled with increases in imports of aluminum automotive sheet; have also put downward pressure on NHT (5xxx) sheet and muted any sizeable conversion price increases on HT (6xxx) automotive sheet.
- Imports of aluminum automotive sheet into the US have increased about 24% in 2019 compared to the same period in 2018.
- The bottom line is that this essentially balances the North America aluminum automotive sheet market, erasing the previously forecast deficit of around 120 kmton in 2020; thereby capping any significant conversion prices increases.