Unwrought aluminium market in Italy

Earlier Report Observations

The market for unwrought aluminium in Italy experienced significant volatility between 2018 and 2023, with volume declining from 2.1 million t in 2018 to 1.6 million t in 2023. This movement was primarily driven by evolving trade policies, rising energy costs, and new environmental regulations. From 2018 to 2020, a gradual reduction of import duties on unwrought aluminium was countered by increasing international trade pressures, including U.S. tariffs on Russian and Chinese aluminium, which raised sourcing costs for Italian firms and contributed to lower imports and a shrinking market volume.

A temporary rebound occurred in 2021, when a 60% surge in primary aluminium imports from China over the first eleven months pushed the market size back above 2 million t, despite reported bottlenecks in logistics and supply chains. However, from 2022 onward, the introduction of the Carbon Border Adjustment Mechanism (CBAM) for aluminium and an increase in the EU tariff burden from 4% to 6% raised import costs. Simultaneously, persistently high energy costs—accounting for up to 80% of production expenses—accelerated the closure of primary aluminium smelters in Europe, deepening Italy's import dependence and contributing to a market contraction to 1.6 million t in 2023.

New environmental labeling rules for packaging, which came into force in January 2023 under Legislative Decree 116/2020, added further regulatory complexity for downstream aluminium users. Italy's strong recycling performance, with a 91.6% recycling rate for beverage cans in 2022, supported secondary aluminium supply but could not offset the declines in primary production and import volumes driven by these structural cost and regulatory factors.

Production unwrought aluminium in Italy

In value, 2017-2020, M $ US

Italy's unwrought aluminium production value reached 1 796 million US dollars in 2020, marking a 10.8% increase compared to the previous year. Looking at the broader period from 2017 to 2020, production declined by 10.3%, which translates to an average annual decrease of 3.5%. The lowest value was recorded in 2019 at 1 621 million US dollars, while the peak occurred in 2018 at 2 031 million US dollars. The most significant drop was observed in 2019, with a decline of 20.2%.

Annual dynamics of production in Italy in value, 2017-2020, M $ US

In kind, 2017-2020, K t

Following two years of decline, Italy's unwrought aluminium production volume rebounded in 2020. The country produced 1 221 thousand tonnes that year, representing a 6.6% rise from 2019. The lowest volume was recorded in 2019 at 1 145 thousand tonnes, which also saw the largest decline of 4.4%.

Annual dynamics of production in Italy in kind, 2017-2020, K t

Exports unwrought aluminium from Italy

Exports in kind, K t

Italy's unwrought aluminium exports grew for the third consecutive year in 2020, reaching 423 thousand tonnes. This marked a moderate increase of 5.5% compared to 2019. Over the period from 2017 to 2020, exports rose by 10.6%, averaging an annual growth rate of 3.4%.

Annual dynamics of product's exports from Italy in kind, 2017-2020, K t

Between 2017 and 2020, Italy's unwrought aluminium exports were distributed across numerous countries. Even the top three destinations—Germany, Slovenia, and Austria—collectively accounted for only 49.4% of total export volumes, highlighting the diversity of trade partners.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Italy in kind, 2017-2020

Exports in value, M $ US

Italy's unwrought aluminium export value declined for the second year in a row in 2020, falling to 732 million US dollars. This represented a 2.5% decrease from 2019. From 2017 to 2020, exports dropped by 12.3%, with an average annual decline of 4.3%. The highest value was recorded in 2018 at 911 million US dollars, which also saw the largest increase of 9.1%. In contrast, the most significant decline occurred in 2019, with a drop of 17.6%.

Annual dynamics of product's exports from Italy in value, 2017-2020, M $ US

From 2017 to 2020, Italy's unwrought aluminium export value was spread across a wide range of countries. The top three partners—Germany (26.1% of export value), Slovenia (12.2%), and Austria (11.2%)—together made up just 49.6% of total exports, indicating a highly diversified market.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Italy in value, 2017-2020

Imports unwrought aluminium to Italy

Imports in kind, K t

Italy's unwrought aluminium import volumes fell for the second consecutive year in 2020, dropping to 1 065 thousand tonnes. This was a 16.3% decrease compared to 2019. Over the 2017-2020 period, imports declined by 18.7%, with a compound annual growth rate of -6.7%. The peak volume was recorded in 2018 at 1 347 thousand tonnes, which also experienced the largest increase of 2.9%.

Annual dynamics of product's imports to Italy in kind, 2017-2020, K t

The structure of Italy's unwrought aluminium imports in kind from 2017 to 2020 was highly diversified. The top three suppliers—Mozambique (14.2% of import volume), Russia (13.5%), and Greece (8.6%)—collectively accounted for only 36.3% of total flows, with no single country dominating the market.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Italy in kind, 2017-2020

Imports in value, M $ US

Italy's unwrought aluminium import value declined for the second year in a row in 2020, reaching 1 974 million US dollars. This represented a substantial drop of 22.9% from the previous year. Between 2017 and 2020, imports decreased by 28.4%, averaging an annual decline of 10.5%. The highest value was recorded in 2018 at 3 122 million US dollars, which also saw the largest increase of 13.3%.

Annual dynamics of product's imports to Italy in value, 2017-2020, M $ US

Over the 2017-2020 period, Italy's unwrought aluminium import value was distributed across a broad set of partner countries. The top three—Mozambique (13.5% of import value), Russia (12.9%), and Greece (9.3%)—together accounted for just 35.8% of total flows, underscoring the diversity of sourcing.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Italy in value, 2017-2020