Construction Hampers European Aluminum Market

​Fort Lauderdale, Florida, resident Davis D’Addario retains an interest in the minerals industry. To remain informed about industry trends, investment executive David D’Addario attends trade conferences, including those sponsored by Fastmarkets.

In July 2023, Fastmarkets reported that slowed construction dampened aluminum sales. Rising interest rates and costs have impacted construction. Simultaneously, Europe has seen a decrease in aluminum prices and premiums. According to the news release, construction investment could fall in 2023 by 2.5 percent year-over-year.

The correlation between the fall in construction investment and its impact on the aluminum market is not surprising. Since building construction fell 30-45 percent in 2023, aluminum producers took a break over the summer. Producers had aluminum to sell, but sales remained sluggish, and inquiries were low.

Thus, industry experts predict that a lack of demand might result in decreased aluminum costs due to lower broker offers. When demand for aluminum rebounds, prices could increase sharply because of limited supply.

David D'Addario, New Day Aluminum LLC

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