Bonnell Aluminum Shipments Fall as Solar, Auto and Construction Demand Weakens

Bonnell

Bonnell Aluminum shipments fell in the first quarter as weaker demand from solar panel manufacturers, automotive customers and nonresidential building markets weighed on the US extruder. Total shipments declined by 7.3% year on year to 35.2mn lb.

Bonnell Aluminum shipments showed the split in US extrusion demand. Traditional volume markets weakened, while T-slotted extrusions used in data centers, automation and manufacturing increased sharply.

Bonnell Aluminum shipments also reflected a more difficult order environment. New orders fell by 20% to 2.8mn lb/week, while open orders dropped by 24% to 19mn lb at the end of the quarter.

The company said open orders are now below levels normally associated with stable demand. That signals weaker near-term visibility for US extruders despite revenue growth from higher metal cost pass-through.

Solar, Automotive and Construction Weakness Pressure Volumes

Nonresidential building and construction shipments fell by 6% as higher costs and economic uncertainty weighed on demand. This is important because construction remains one of the largest end-use markets for aluminum extrusions.

Automotive and transportation shipments fell by 19%. Manufacturers faced higher cost pressure, which reduced extrusion consumption in a sector already sensitive to borrowing costs, tariffs and consumer demand.

Electrical shipments were the weakest segment. Deliveries fell by 45% after the expiration of federal tax credits for solar panels.

The solar decline shows how policy incentives can directly affect aluminum extrusion demand. When installation incentives weaken, demand for solar frames, mounting systems and related electrical infrastructure can slow quickly.

Revenue still increased by 19.3% to $159.5mn. The gain came mainly from passing higher metal costs through to customers rather than stronger physical volume.

This distinction matters for aluminum processors. Higher revenue can mask weaker demand if it is driven by metal price inflation instead of shipment growth.

Data Centers and Tariff Enforcement Offer Offset

T-slotted extrusion shipments rose by 70% from a year earlier. These products are used in data centers, automation and manufacturing, where demand for data containment and infrastructure continues to grow.

The strength in T-slotted extrusions shows how data center investment is creating new demand pockets for aluminum. As AI infrastructure expands, demand for modular framing, enclosures, racks, support systems and industrial automation structures can increase.

Bonnell also pointed to import competition. The company said new orders were hurt by softer US demand and undervaluation of imported extrusions.

The White House changed enforcement of Section 232 tariffs on aluminum derivative products on 6 April. Primary metal products are now tariffed at 50%, rather than 50% of the reported metal content value inside an item.

Bonnell said the change should close a loophole that allowed undervaluation of imported manufactured aluminum products. Stronger enforcement could improve the competitive position of domestic extruders if applied consistently.

The company is also adjusting its billet strategy. It has moved away from Middle Eastern billet supply and is favouring North American suppliers after supply constraints linked to the US-Israel war on Iran.

Bonnell is also optimising its own billet casting operations at Carthage, Tennessee, and Newnan, Georgia. This should help reduce exposure to external billet supply disruption and improve feedstock control.

The quarter therefore shows two competing forces. End-market demand is weak in several traditional segments, but data center demand, tariff enforcement and domestic billet optimisation may provide strategic support.

The Metalnomist Commentary

Bonnell’s first quarter shows that US aluminum extrusion demand is no longer moving as one market. Construction, solar and automotive are weak, but data centers and tighter tariff enforcement could create a more selective recovery for domestic extruders.