Aluminium Supply Chain Aluminium Supply Chain

Exploring India’s Role in the U.S. Aluminium Supply Chain

India’s role in the U.S. aluminum supply chain has come under heavy scrutiny as global trade dynamics continue to evolve. With protectionist policies coming into play, tariffs rising, and patterns of demand shifting, India can be considered a key player in the U.S. aluminum ecosystem, albeit one that is under threat. 

This article will examine India’s export performance, the positioning of India in global supplier terms, and the effects of recent U.S. Section 232 proclamations, which have placed a flat 25-percent tariff on aluminum and aluminum products.

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 India’s Aluminium Exports to the U.S.: A Performance Snapshot

India has historically remained one of the top 10 suppliers of aluminum for the United States, even after Section 232 tariffs were imposed in early 2018. Recent trends are highlighted in the table below: 

USA’s Global Imports of Aluminium (Ch. 76) – US$ Billion

Exporter 2022 2023 Growth (%) Share 2022 Share 2023
Canada 12.94 11.22 -13.3% 35.3% 39.7%
China 4.04 2.74 -32.1% 11.0% 9.7%
Mexico 2.27 1.96 -13.9% 6.2% 6.9%
India 1.22 0.91 -25.6% 3.3% 3.2%

As India has witnessed a 25.6% drop in 2023, nevertheless, it has a significant share in the U.S. aluminum import basket: witness the case for aluminum long products and billets. 

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 Key Product Categories from India to the U.S.

U.S. proclamations from February 18, 2025, have now extended Section 232 for more tariff lines, which will include both raw and finished aluminum products. 

India’s 5-Year Average Exports (2019–2023) vs U.S. Imports

Product Category India’s Exports (US$ Mn) U.S. Imports (US$ Mn) India’s Share
Aluminium Ingots 264.42 10,944.12 2.4%
Aluminium Long Products 133.13 2,397.90 5.6%
Derivatives of Aluminium 1,157.83 69,659.87 1.7%
Flat Rolled Aluminium Products 47.02 3,765.30 1.2%
Products of Aluminium 151.06 6,071.35 2.5%

The Indian strength is aluminium long products, especially in bars, rods, wires & billets, especially under HS Code 76051100, wherein India commands 13.2% of U.S. imports. 

U.S. Demand Drivers for Aluminium

The U.S. aluminium market is driven by five major sectors:

Sector % Share of U.S. Aluminium Use
Transportation 36%
Packaging 23%
Construction 14%
Electrical 9%
Consumer Durables 8%

With electric vehicles, renewable energy, and sustainable packaging being an increasingly demanded future, India has an opportunity to establish itself as a major supplier of value-added aluminium components. 

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 Challenges Posed by Section 232 Tariffs

 Indian aluminium exporters are now also facing fresh challenges from recent U.S. policy changes: 

  • Flat 25% duty on all aluminium and derived products
  • Cancellation of product exclusion certifications and GAEs
  • Downstream fabricated items and components are also included 
  • Elevated effective entry barriers to Indian aluminium in the U.S. market

Aluminium exports from India still increased in some categories in 2023, showing incredible resilience and competitiveness despite these barriers. 

 USA’s Supply Deficit and Import Reliance

According to USGS:

Year U.S. Aluminium Import Reliance (%)
2020 38%
2021 40%
2022 52%
2023 44%
2024 47%

This continued dependency on imports, especially of billets and wires, suggests that the U.S. will continue to need imports. And thus, India is a strategic partner. 

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 Must-Read Blog Posts from NPCS

  1. Aluminium Wire Rod: The Best Industry for Your Investment
  2. Best Business Ideas to Start In Aluminium …
  3. Recycling aluminium is a profitable and expanding industry.
  4. Construction Material Business Ideas
  5. Top Export Business Ideas for 2024

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 Final Thoughts

The progressive rise of India in the aluminum supply chain of the US is a strategic necessity as much as an issue of the quality of products. Tariffs have kept the doors closed but with this limited but strong presence of India in long products, billets, and various value-added derivatives, there lie strong sustainable growth opportunities.

Further aggressive advocacy by the government, shrewd trade diplomacy, and entrepreneurship would further strengthen India’s presence in global aluminum markets.

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