Aluminum Siding Prices Explained

Aluminum siding prices are expected to go north this year as rising U.S. energy costs and notable supply disruptions defined its market value. The government’s limited financial incentive to producers significantly impacted the commodity’s declining production. Moreover, traders reported steady demand from end-users, potentially driving aluminum siding prices. 

Why are aluminum siding prices fluctuating?

1. Quality and Design of the Siding

Design and quality make up the entire aluminum siding costs as consumers purchase it according to their preferences, material selections, and manufacturing techniques.

There are price differences in the market since its quality and design directly affect its performance, production costs, and aesthetic appeal. Overall, customers usually spend more money on siding that blends beauty, utility, and durability seamlessly at a higher price.

2. Raw Material Costs

Aluminum is the primary component of aluminum siding and the cost of this raw material plays a major role in the overall production costs. As a result, price fluctuations for aluminum directly affect the cost structure of producing aluminum siding and its prices.

3. Market Demand

There are seasonal trends in the demand for building materials like aluminum siding. For example, during peak construction seasons, there is a surge in demand, leading to price increases.

Conversely, slow seasons witness less demand, which leads to cheaper aluminum siding costs. Thus, seasonal variations in construction activity have a big impact on aluminum siding cost and pricing.

4. Transportation Costs

Production facilities that produce aluminum siding usually ship their goods to centers of distribution or retail locations. Thus, shipping and freight costs have a direct impact on the process’s overall expenses.

Generally, the entire cost of shipping aluminum siding from the manufacturing plant to locations of sale is largely determined by these costs which are impacted by variables like fuel prices, shipping distance, and the mode of transportation used.

Which variables impact the price of aluminum siding?

• Quality and Design of the siding
• Raw Material Costs
• Transportation Costs
• Market Demand
• Tariffs and Trade Policies
• Technology and Innovation

Where does aluminum siding come from?

Aluminum siding is often backed by materials such as fiber cement board, oriented strand board, and plywood. Additionally, it’s a building material that is primarily made from aluminum, a lightweight and durable metal.

Advancements in technology and manufacturing processes continue to shape the production of aluminum siding, making it a versatile and popular choice for exterior cladding in construction. The process of manufacturing aluminum siding involves several steps:

1. Extraction of Bauxite – The main mineral used to extract aluminum is bauxite. Large deposits of these are in Guinea, Australia, Brazil, China, and India.

2. Refining Bauxite into Alumina – The Bayer process is used to purify the mined bauxite to create alumina. This involves crushing the bauxite and processing it at a high temperature with sodium hydroxide.

3. Electrolytic Reduction to Aluminum – Next, alumina is electrolyzed using a procedure known as the Hall-Héroult process. Thus, aluminum is created in this procedure by dissolving alumina in melted cryolite and electrolyzing it.

Usually, this aluminum is shaped into big blocks known as ingots.

4. Rolling and Extrusion – Then, the aluminum ingots undergo additional processing in rolling mills or extrusion techniques. It is run through rollers to thin it out and form it into sheets.

5. Coating and Finishing – To enhance its look and function as a siding, it goes through other procedures. Enhancing durability, weather resistance, and attractiveness involves applying protective coatings, finishes, and colors.

6. Cutting and Shaping – The aluminum sheets are cut into the desired sizes and shapes for siding. This includes panels of various dimensions and profiles to suit different architectural styles.

7. Distribution and Installation – The finished aluminum siding is distributed to construction material suppliers and retailers for sale. Finally, it is purchased by contractors or homeowners and installed on buildings as a protective and decorative exterior covering.

What are the uses of aluminum siding?

Aluminum siding is a lightweight and durable exterior cladding that is made from aluminum. Additionally, certain variations use aluminum that has been recycled to support goals for the environment.

Furthermore, continuous advancements in technology and manufacturing processes enhance the quality of aluminum siding, thus improving its adaptability and extensive use as an external cladding material in buildings. Aluminum siding has many industrial applications such as:

1. Roofing and Cladding – Aluminum siding is used for roofing and cladding in stadiums, factories, retail centers, and warehouses. Moreover, it is easy to install and maintain, making it a versatile choice for enhancing both functionality and visual appeal in various building applications.

2. Window and Door Frames – Also, it is used for window and door frames in various settings, such as offices, hotels, schools, and hospitals. Furthermore, it offers strength, security, and energy efficiency.

3. Stairs Railings – In residential and commercial buildings, aluminum siding is used as railings as it is safe, durable, and easy to clean.

4. Handrails – It’s lightweight, sturdy, and attractive, so it’s employed in handrails in balconies, terraces, decks, and gardens.

5. Kitchen Cabinets – In modern kitchens, it is used for kitchen cabinets as it is sleek, stylish, and functional.

What is the future price of aluminum siding?

Generally, the aluminum siding market is fueled by the increasing use of aluminum which is in line with the need for adaptable and environmentally friendly options in the construction and other industries.

Additionally, the emerging need for environmentally friendly and energy-efficient materials is on the rise, adding profitability to its economy. For instance, opportunities in residential and non-residential construction drive the commodity’s market as it protects against hail, moisture, wind, and fungal decay.

Moreover, energy-efficient building codes, smart siding materials, and the demand for impact-resistant options contribute to market expansion. Overall, the average price of aluminum siding will be around $1,200 per ton in 2028, with a 3.2% CAGR growth.