South Korea’s three primary aluminum flat product manufacturers—Novelis Korea, Choil Aluminum, and Daeho Al—collectively reported an increase in sales and domestic shipments in May 2025. Total sales for the month reached 78,898 metric tonnes, a 3.1% gain from 76,508 tonnes a year prior. Domestic shipments rose by 6.7% to 25,600 tonnes. However, the impact of escalating US tariffs created a mixed export landscape, with overall exports rising by a modest 1.5% to 53,298 tonnes. Individual company performances varied significantly.
Domestic Shipments Boost Overall Sales
The improvement in overall sales for South Korea’s aluminum flat product sector was primarily driven by stronger domestic demand. Novelis Korea, the largest aluminum recycling center in Asia with an annual capacity of 320,000 tonnes, saw its domestic shipments increase by 8.9% to 15,291 tonnes from 14,046 tonnes in May 2024. Choil Aluminum’s domestic shipments edged up 1.5% to 8,131 tonnes, while Daeho Al reported a substantial 12.5% increase in domestic volume, reaching 2,178 tonnes from 1,936 tonnes a year ago. This domestic resilience comes despite a generally subdued construction market in South Korea.
US Tariffs Create Uneven Export Landscape
While combined exports for the three companies saw a slight 1.5% improvement year-on-year, individual performances diverged sharply due to the escalating trade tensions with the United States. In early June 2025, the US government doubled tariffs on imported steel and aluminum from 25% to 50%, a move that analysts predict will add billions of dollars in costs to the US market and disproportionately affect key exporters like South Korea. For 2024, South Korea’s total aluminum alloy exports to the US amounted to $1.02 billion.
Novelis Korea demonstrated resilience in this challenging environment, increasing its exports by 2% to 52,704 tonnes from 51,658 tonnes in May 2024. This marked Novelis Korea’s highest export demand since June of the previous year. The company’s focus on low-carbon aluminum may contribute to its competitive edge, as Asian buyers, particularly from the automotive and packaging sectors, are increasingly seeking certified low-carbon materials, often paying a premium due to limited supply options within Asia.
Conversely, Choil Aluminum’s exports plummeted by 77.9%, falling from 199 tonnes to just 44 tonnes. Daeho Al also experienced a contraction in its export demand, down 16.3% to 550 tonnes. The significant increase in US tariffs is widely considered a primary factor in these declines, making Korean aluminum products less price-competitive in the American market.
Aluminum Market Dynamics and Trade Policy
Aluminum is a versatile and critical industrial metal, essential for sectors ranging from packaging to automotive and construction. The global market is increasingly influenced by trade policies, such as the US tariffs that have intensified in 2025. These tariffs aim to protect domestic industries but can significantly impact the competitiveness of exporting nations like South Korea, which has a substantial export-driven economy. South Korea’s total aluminum exports in 2024 amounted to $5.03 billion, with a significant portion traditionally directed to the US. The escalating tariffs compel South Korean exporters to adapt their strategies, potentially by diversifying export markets or increasing investment in high-value, niche products that may be less susceptible to broad tariff measures. The rising demand for low-carbon aluminum globally also presents an opportunity for producers to differentiate their products in a competitive market.
Company Background and Market Context
Novelis Korea, a subsidiary of Novelis, is a major producer of flat-rolled aluminum products, serving sectors such as construction, packaging, beverage cans, and consumer electronics. Its facility in Yeongju, South Korea, is notable for being the largest aluminum recycling center in Asia. Novelis Inc. as a whole reported robust demand for beverage packaging and specialty products in fiscal year 2025, partially offsetting declines in automotive shipments.
Choil Aluminum is a South Korean manufacturer of aluminum flat products. The company primarily serves the domestic market, with a notable exposure to the local construction sector.
Daeho Al is another South Korean producer of aluminum flat products, contributing to the country’s manufacturing base for various industrial applications.
