New record-high premiums on aluminium imports in the United States are sending ripples through the global packaging industry as manufacturers grapple with rising costs for aluminium packaging materials.

A sharp increase in the aluminium raw material price, driven by hefty import tariffs and constrained supply, threatens to force changes in packaging design, material choice and sourcing strategies.

Elevated aluminium prices and packaging cost pressures

The US mid-west aluminium premium — the additional cost on top of London Metal Exchange benchmark pricing — has surged to a record high of 88.10 cents per lb (approximately US$1,942 per metric ton) as of early November.

 When combined with a base price of around US$2,850 per ton, US buyers face total landed costs nearing US$4,792 per ton.

The key driver is the US government’s import duty on aluminium, ramped to 50 % in June, which aims to stimulate domestic output.

For packaging companies, particularly those using aluminium cans, foil trays and other metal-based packaging formats, the impact is threefold: the raw material is more expensive, sourcing is less certain and downstream cost pass-through becomes harder.

Industry sources note that aluminium users may consider switching to alternative materials (for example plastics or paper-based packaging) should tariffs remain at elevated levels.

Shifting supply chain dynamics and sourcing risks

Beyond the headline price rise, the packaging sector must address supply chain shifts. Globally, aluminium production outside China has fallen by over 1.1 million tons per year, while China’s net exports of refined metal have also declined by some 900,000 tons annually.

The decline in availability is contributing to the tighter market for downstream users of aluminium, including packaging converters.

In the European Union, downstream aluminium users warn that high tariffs on raw aluminium and dependence on imports are placing small and medium-sized enterprises in the supply chain under significant cost pressure.

For packaging manufacturers, this means that cost volatility and supply risk are no longer confined to their immediate input – they increasingly reflect broader global trade and policy developments.

Implications for packaging formats and material substitution

The aluminium cost squeeze is prompting packaging companies to evaluate alternative formats and materials. Some beverage packaging producers, facing higher aluminium can costs, are shifting towards polyethylene terephthalate (PET) or other plastic bottle formats as a pragmatic response.

The result is that the “aluminium packaging” value chain may lose share unless the cost base recovers or upstream efficiencies are realised.

For the packaging industry at large, the current situation signals a need to:

• audit exposure to aluminium pricing in primary and secondary markets;
• explore dual-material strategies (metal plus plastics/paper) to mitigate risk;
• engage more closely with aluminium recyclers and secondary-material suppliers, given that recycled aluminium offers cost and sustainability advantages.

Ultimately, the surge in aluminium premiums and the tightening of global supply underpin a significant cost and sourcing challenge for packaging firms reliant on metal formats.

As the sector adapts, material strategy and supply-chain flexibility will become key to maintaining competitiveness in an era of rising commodity uncertainty.

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