SDI Aluminum Coil First Shipments Signal US Sheet Supply Shift

SDI

SDI aluminum coil first shipments mark a pivotal step in domestic sheet supply. The Columbus rolling mill has shipped initial coils. Therefore, SDI aluminum coil first shipments will scale through year end. Crucially, SDI aluminum coil first shipments target can sheet, auto, and common alloy buyers.

Columbus ramp targets 40–50% capacity by year end

SDI expects rapid ramp at Aluminum Dynamics in Mississippi. The mill plans 40–50% of 650,000 t/yr capacity by December. Customers are qualifying 3xxx, 5xxx, and 6xxx alloys. As a result, long-term offtakes should follow. Management highlights steady output increases since the 16 June first load.

Tariffs and scrap strategy boost competitiveness

Section 232 tariffs now favor domestic coil. The 50% rate lifts import costs and supports US pricing. Meanwhile, ADI aims to displace “high-cost imports” filling a 1.4mn-t deficit. SDI will maximize recycled aluminum via OmniSource. Consequently, upgraded scrap should trim slab costs and improve margins.

Strong can-sheet demand underpins the ramp. Beverage brands and bottlers want more aluminum packaging. Therefore, SDI prioritizes can makers while serving autos and common alloy. On-site slab casting will supply most of 900,000 t/yr needs. Satellite sites in Mexico and Arizona will backfill the balance.

Market implications extend beyond packaging. Domestic coil adds resilience for automotive stampers. However, buyers still require qualification runs and surface audits. As a result, near-term volumes will grow progressively. Lower nonferrous recycling shipments underscore the importance of yield improvements.

The Metalnomist Commentary

SDI’s Columbus ramp lands at a favorable policy moment. If scrap upgrading and slab logistics execute, ADI can sustainably replace imports. Watch contract wins with can-sheet majors as the clearest indicator of run-rate stability.