Aluminum Production NAICS 3313

Nov 18, 2025 - Record Aluminum Premiums

• Premiums for buyers of aluminum on the physical market in the US have hit record highs, driven by steep import tariffs and tight global supplies, Reuters reported in November. For US producers this has a two-way effect. The upside: elevated prices and tighter domestic supply bolster margins and reinforce the value of domestic production, providing strong incentives for investment in new capacity. The downside: the steep premiums reflect input cost pressures and supply-chain disruption for downstream consumers, which may reduce demand, and raise expectations that domestic producers will need to ramp up output or face reputational risk for shortages. Tight market conditions also increase operational risk because producers must manage higher raw-material costs, shifting trade flows and regulatory uncertainty. Overall, US aluminum producers are positioned to benefit but must take action to scale operations and sustain supply reliability in a tighter global market.
• Researchers at Oak Ridge National Laboratory have developed an innovative aluminum alloy, called RidgeAlloy, that transforms low-value aluminum scrap into a high-value domestic supply chain for manufacturing new structural auto parts, QualityDigest reports. Amid tight global supplies of the metal, a wave of aluminum auto body scrap is set to enter salvage systems over the next decade. But it’s too impure to be safely reused in new, critical automotive parts, limiting its value. RidgeAlloy opens a pathway to high-value recycled material use, potentially reducing reliance on imported primary aluminum and lowering production energy needs by up to 95%. Aluminum producers that adopt or support this type of recycled alloy technology can boost domestic supply-chain resilience and capture rising demand for lightweight vehicles and EVs, boosting plant utilization and margins, while producers that rely solely on primary aluminum may face pressure as recycled alternatives become viable.

• To reshore production and strengthen national security, the Trump administration in August expanded its 50% steel and aluminum tariffs to include more than 400 additional product categories, CNBC reports. The tariff list now covers products such as fire extinguishers, machinery, construction materials and specialty chemicals that either contain, or are contained in, aluminum or steel, according to CNBC. As a result, US companies that import finished goods and parts that contain a high percentage of the two metals are subject to stiff tariffs. The Wall Street Journal reports that the administration is considering some tariff relief for US automakers and tech firms. The US aluminum industry has enthusiastically supported tariffs on lower-priced imports of the metal and encouraged President Trump to add duties to imported finished products.
• Producer prices for alumina and aluminum producers and processors jumped 21.1% in August compared to a year ago after rising a comparatively modest 2.3% in the previous August-versus-August annual comparison, according to the latest US Bureau of Labor Statistics data. Rising steeply since June 2025, producer prices are approaching their peak in April 2022. According to the latest US Geological Survey data, domestic primary aluminum production in May was 58,000 metric tons, with average daily production of 1,870 mt, unchanged from April 2025. Employment by alumina, aluminum, and other nonferrous metal producers grew 1.5% year over year in July, while the average industry wage for workers employed by primary metals manufacturers rose 0.6% YoY in August to $28.89 per hour, down more than $1 from its peak in March, BLS data show.