Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

US aluminum manufacturer Arconic has idled its extrusion press in Chandler, Arizona due to a slump in aerospace demand because of the COVID-19 pandemic’s impact. 


The company told Davis Index that it plans to shift production volumes from Chandler across its network because of which it does not expect revenue to be impacted by the shutdown. 


Arconic has not yet set a timeline for restarting the plant. Since the recovery in air travel has been slower than expected, the manufacturer will keep the press idle until demand recovers to the necessary extent. 


The extrusion billet and scrap markets have seen tightening supply to an extent where no material is available for spot sale anymore. However, Arconic’s decision is purely based on the fact that the end-consumer industry for the Chandler plant is currently subdued. In the US, the company operates a plant in Lafayette, Indiana which manufactures the same products. 

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