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1 Market View Aluminum Highlights Week Ending: An update on industry activity and economic indicators By: Beau Walker, Department Leader, Market Intelligence and Projects Trane Energy Supply Services The views expressed in the Market View are those of the author and do not necessarily represent the views of the Aluminum Association The NYMEX prompt-month natural gas contract has traded mixed over the past month as mixed fundamentals have failed to move the contract out of its four-month trading range. After bottoming out at $2.704 per MMBtu in mid-july, the prompt contract rallied to a high of $2.993 per MMBtu on August 22. Multiple tests to break above the psychologically important $3.00-per-MMBtu level failed and the prompt contract, now the October contract, pulled back below $2.80 per MMBtu. Natural gas production continues to weigh heavily. According to the Energy Information Administration (EIA), natural gas production set another record in August at 85.3 Bcf/d, an increase of 10.4 Bcf/d over August 2017 levels and a seventh consecutive month setting a new production record. Production has helped keep a ceiling on prices despite demand growth from the power generation and export sectors. LNG exports have doubled to 3.1 Bcf/d over the past 12 months and power generation, a measure of cooling demand in the summer months, has added another 2.5 Bcf/d of demand when compared to August 2017 levels. Natural gas storage levels, which increase during the summer injection season and decrease during the winter when stored gas is used to meet demand needs, continue to be the most bullish factor for pricing. As of August 31, storage levels are 20.2% below year-ago levels and 18.7% behind the 5-year average. Assuming 5-year average injections for the remainder of injection season, storage levels will enter the withdrawal season at their lowest levels in more than a decade. Prompt-month West Texas Intermediate (WTI) crude oil has pulled back from its July highs as concerns over political unrest and trade disputes have eased. Crude production has also played a role in the move. U.S. production has remained at 11.0 MMbpd since July, a record-high level, and OPEC production increased for a second consecutive month in July. In addition, OPEC and non-opec producing nations noted that they will be meeting next week to discuss oil production increases. Despite ongoing tensions surrounding various trade negotiations and disputes around the globe, the announcement of potential production increases by OPEC/non- OPEC nations helped trigger a bearish movement for crude prices, with prompt-month WTI shedding $4.18 per barrel since Monday while Brent has dropped $3.52 over the same period. Register Now for the Annual Meeting! Follow us on:

2 Industry Activity 2 1,100 1, U.S. Bureau of the Census and Statistics Canada Foreign Trade - U.S. and Canada (Millions of Pounds) Imports Exports Not Seasonally Adjusted September 6 Aluminum imports of ingot, scrap and mill products into the U.S. and Canada (excluding cross-border trade) totaled 744 million pounds in July 2018, off 13.8 percent from the July 2017 total of 863 million pounds. Including scrap, which accounted for roughly 52.2 percent of reported aluminum exports in July, exports totaled 588 million pounds, up 13.4 percent over a year ago. Excluding scrap, exports totaled 281 million pounds, an increase of 18.5 percent over last year. Exports of scrap increased 9.1 percent year-over-year. Through the first seven months of 2018, imports were down 6.3 percent to 5,567 million pounds, while exports were up 13.4 percent to 4,102 million pounds.

3 Economic Activity U.S. Census Bureau U.S. Value of Construction Put in Place ($USD in billions) Nonresidential Residential Seasonally Adjusted Annual Rate September 4 The U.S. Census Bureau of the Department of Commerce reported that the annual rate of construction spending during July 2018 totaled an estimated $1,315.4 billion, seasonally adjusted, an increase of one-tenth of one percent month-over-month, but up 5.8 percent over the July 2017 estimate of $1,242.8 billion. Residential construction ($566.6 billion seasonally adjusted annual rate) rose six-tenths of one percent monthover-month, and was up 6.6 percent y/y. Nonresidential construction was at a seasonally adjusted annual rate of $748.8 billion, off threetenths of one percent from June 2018 (+5.3% y/y). Construction spending through the first seven months of 2018 totaled $740.5 billion, 5.2 percent above the $703.7 billion ytd September 4 Preliminary data published by Automotive News indicated that U.S. light-vehicle sales totaled million units in August 2018, a decline of two-tenths of one percent from the August 2017 total of The daily sales rate in August was 54,888 over 27 days, two-tenths of one percent below the 2017 rate of 54,975 (also 27 days). August s seasonally adjusted annual rate of million units was ahead of August 2017's million. The year-to-date SAAR of million units is still above like-2017's pace of million units. Year-to-date 2018 sales have totaled million units, nine-tenths of one percent above the 2017 year-to-date total of million. 1,800 1,600 1,400 1,200 1,000 WardsAuto & Automotive News U.S. Light Vehicle Sales (Thousands of units) Light Vehicles 12-Month Average Not Seasonally Adjusted U.S. Census Bureau U.S. Trade in Goods and Services ($ Billions) Imports Balance Exports July 2018 Trade Deficit $50.1 Billion Seasonally Adjusted September 5 The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced that total July exports of $211.1 billion and imports of $261.2 billion resulted in a trade deficit of $50.1 billion, up 9.5 percent over the revised June deficit of $45.7 billion. Exports during July fell $2.1 billion or 1.0 percent from the revised June total, while imports increased $2.2 billion (+0.9%). A decrease in the export of goods, down $2.3 billion m/m, and the contrasting increase of the import of goods were largely responsible for the increase in the deficit. Year-to-date, the goods and services deficit increased $22.0 billion, or 7.0 percent, over July Exports increased $115.7 billion or 8.6 percent. Imports increased $137.7 billion or 8.3 percent.

4 Economic Activity Continued A-14 N-14 F-15 M-15 A-15 N-15 F-16 M-16 A-16 N-16 F-17 M-17 A-17 N-17 F-18 M-18 A-18 4 September 5 According to the most recent DAT Trendlines release (August 26-September 1), August closed with average rates that were lower than June and July, but still about 20% higher than last year at this time. The national average rate fell 1 per mile for vans, dropped 2 for flatbeds. The national load-to-truck ratio for vans fell to 6.7 loads per truck, while the national flatbed ratio dropped to 25.3 loads per truck, the lowest load-totruck ratio since February U.S. Census Bureau Durable Goods New Orders Millions of Dollars Inventories (Right Axis) Shipments New Orders Seasonally Adjusted September 6 New orders for manufactured durable goods in July, down three of the last four months, decreased $4.3 billion or 1.7 percent to $247.2 billion. This followed a nine-tenths of one percent June increase. Transportation equipment, also down three of the last four months, drove the decrease, $4.6 billion or 5.2 percent to $83.0 billion. Excluding transportation equipment, July new orders for manufactured durable goods increased onetenth of one percent m/m. The value of manufacturer's shipments and inventories decreased two-tenths of one percent and advanced 1.3 percent m/m in July, respectively. September 6 Total nonfarm payroll employment increased by 201,000 in August, the U.S. Bureau of Labor Statistics reported. The unemployment rate remained unchanged from the July rate at 3.9 percent with job gains occurring in in professional and business services, health care, wholesale trade, transportation and warehousing, and mining. Manufacturing employment fell by 3,000 jobs, the sector's first monthly decline since July That brings the average monthly change for the sector to 21,200 additional jobs over the last 12 months. In total, manufacturing employment has increased by roughly 254,000 jobs over the last year U.S. Bureau of Labor Statistics Month-to-Month Change in Manufacturing Employment (Thousands) M/M Change 12mo. Moving Avg. Seasonaly Adjusted

5 Global Activity 5 September 4 The Markit final U.S. Manufacturing Purchasing Managers Index (PMI) registered 54.7 in August, down from 55.3 in July. Although signaling the weakest improvement in operating conditions since last November, the PMI indicated a strong overall manufacturing performance. The upturn was supported by further rises in output and new orders, and a renewed increase in export sales. That said, production rose at the weakest rate for almost a year. The latest upturn in new business drove solid increases in employment and backlogs. Meanwhile, rates of both input price and output charge inflation softened to six- and five-month lows, respectively. September 4 The Markit Canada Manufacturing Purchasing Managers Index (PMI) dropped fractionally to 56.8 in August, from 56.9 in July, to signal the weakest overall improvement in business conditions since May. Slower new business growth was the main factor weighing on the headline index in August. Nonetheless, the latest reading remained well above the long-run survey average (53.0). Production volumes increased at a robust pace in August, with the rate of expansion the sharpest since December Manufacturers commented on increased workloads and successful efforts to boost operating capacity at their plants. September 3 The headline Markit Mexico Manufacturing PMI posted 50.7 in August, another monthly improvement in the health of the sector. However, having fallen from 52.1 in July, the headline figure was at a ten-month low. Factory orders and employment continued to rise, but in both cases growth rates moderated from those noted in July. At the same time, survey data showed a renewed decline in production and above-average increases in input costs as well as selling charges. Meanwhile, employment grew for the tenth straight month. The pace of job creation was moderate and the slowest since February.

6 Global Activity Continued... 6 September 3 The Caixin China General Manufacturing PMI posted above the neutral 50.0 level at 50.6 in August. However, this was down from 50.8 in July and signaled the weakest improvement in the health of the sector since June Output continued to expand, and at a quicker pace than in July. However, new orders rose at the slowest rate since May 2017, while export sales declined for the fifth month in a row. At the same time, employment remained on a downward trend which, in turn, contributed to an increase in outstanding workloads. Inflationary pressures meanwhile picked up, with firms noting steeper increases in both input costs and output charges. September 3 The headline Nikkei Japan Manufacturing PMI registered at 52.5 in August. This was compared to 52.3 in July, thereby indicating a stronger rate of improvement in operating conditions across the Japanese goods-producing sector. Latest data extended the current period of growth to two years; however, compared to rates of improvement observed during the first and second quarters, the latest PMI reading pointed to a relatively soft improvement. Meanwhile, cost pressures were sustained in August, leading firms to increase selling prices at the sharpest rate in almost ten years. September 3 The final Markit Eurozone Manufacturing PMI posted 54.6 in August, maintaining a run of expansion that now stretches to 62 months. Down from July s 55.1, the final IHS Markit Eurozone PMI pointed to the slowest growth since November Reflective of the loss of momentum experienced by the sector in 2018 to date, the headline PMI is now six points lower than December 2017 s record high. Similar trends were observed at the market group level, with business conditions improving at slower rates across the consumer, intermediate and investment goods categories in August. Investment goods continued to perform the strongest, followed by intermediate goods.

7 Global Activity Continued... 7 September 3 The seasonally adjusted GDP in Mexico decreased two-tenths of one percent during the second quarter of 2018 when compared with the previous quarter, according to an estimate published by the National Institute of Statistics, Geography and Informatics (INEGI). GDP grew by 1.0 percent in the first quarter of By components, the GDP of Primary activities fell 2.1 percent, Secondary fell three-tenths of one percent, while Tertiary activities increased two-tenths of one percent. Compared with the second quarter of 2017, the seasonally adjusted GDP rose by an estimated 1.6 percent. September 7 Seasonally adjusted GDP rose by four-tenths of one percent in both the euro area (EA19) and the EU28 during the second quarter of 2018, compared with the previous quarter, according to an estimate published by Eurostat, the statistical office of the European Union. In the first quarter of 2018, GDP had also grown by fourtenths of one percent in both areas. Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 2.1% in both the euro area and the EU28 in the second quarter of 2018, after +2.4% and +2.3% respectively in the previous quarter. This report is based on information reported to the Association by participants, which is aggregated by the Association. While the Association believes that its statistical procedures and methods are reliable, it does not warrant the accuracy or completeness of the data. All data contained herein are subject to revision. For further information, contact Ryan Olsen, V.P. Business Information and Statistics at or rolsen@aluminum.org., Inc. All rights reserved.

8 Energy 8 September 6 The U.S. Energy Information Administration reported that natural gas spot prices were mixed this report week (Wednesday, August 29 to Wednesday, September 5). Henry Hub spot prices fell from $2.96 per million British thermal units (MMBtu) last Wednesday to $2.94/MMBtu. At the New York Mercantile Exchange (Nymex), the September 2018 contract expired last Wednesday at $2.895/MMBtu. The October 2018 contract price decreased to $2.795/MMBtu, down 7 Wednesday to Wednesday. September 7 On the NYMEX, the near-month WTI crude oil futures (Cushing, OK WTI Future Contract 1) closed the week at $67.75/bbl on Friday, September 7, off $2.05 (-2.9%) from last week's close of $69.80/bbl. The U.S. benchmark declined as the potential for weaker energy demand on the back of global trade tensions pressured prices, but expectations for tighter supplies as U.S. oil sanctions on Iran go into effect later this year provided some support. Active U.S. oil-drilling rigs fell by 2 last week, the third weekly decline in the last four weeks. Compared to last year, oil rigs have increased by 104. Brent Crude on London's ICE Futures exchange closed the week down at $76.83/bbl (- 1.0%). Friday's spread between the two was $9.08/bbl, up from last week's spread of $7.84/bbl CME Group Inc. Crude Oil Near-Month Futures (WTI & Brent) (U.S. dollars per barrel) Brent WTI

9 U.S. Dollar Federal Reserve Board Weekly Nominal Broad Dollar Index (1997 = 100) Broad Index 30 Day Moving Avg. August 31 According to the most recent release by the Federal Reserve Board, the Nominal Broad Dollar Index closed the week at on Friday, August 31st, advancing six-tenths of one percent from the previous week's close of With the result, the Index has now increased in four of the last five weeks, and has remained above its 30- moving average for 22 consecutive days. Over the last six months, the index has advanced 6.5 percent, while it's up 6.6 percent over the last 12 months. The nominal broad dollar index is a weighted average of the foreign exchange values of the U.S. dollar against the currencies of a broad group of major U.S. trading partners Chinese Yuan to US Dollar Chinese Yuan to One U.S. Dollar 30 Day Moving Avg Canadian Dollar to US Dollar Canadian Dollars to One U.S. Dollar 30 Day Moving Avg Federal Reserve Board Federal Reserve Board Japanese Yen to US Dollar 1.30 US Dollar to Euro U.S. Dollars to One Euro 30 Day Moving Avg Japanese Yen to One U.S. Dollar 30 Day Moving Avg Federal Reserve Board Federal Reserve Board

10 , founded in 1933, works globally to aggressively promote aluminum as the most sustainable and recyclable automotive, packaging and construction material in today s market. The Association represents North America and foreign-based primary producers of aluminum, aluminum recyclers, producers of semi-fabricated products and foundries as well as suppliers to the industry or distributors or jobbers. 10 's statistical programs provide industry information on primary aluminum production, new orders of mill products, industry shipments, end use market estimates, inventories, recycling and foreign trade on a monthly, quarterly and annual basis. Special surveys provide data on specific subjects such as primary capacity, flat roll capacity, inventories and castings shipments. Custom reports are available on a for-fee basis. Web briefings are also available upon request. Industry Overview Aluminum Statistical Review (Annual Fact Book) Aluminum Highlights (Weekly) Aluminum Situation (Monthly) Summary of Producer Shipments and Inventories (Monthly) Primary Aluminum Primary Aluminum Production U.S. and Canada (Monthly) Primary Installed Capacity (Annual) Shipments of Primary Aluminum by Form (Quarterly) Mill Products Index of Net New Order Receipts for Aluminum Mill Products (Monthly) Can Stock Shipments (Monthly) Electrical Conductor Shipments (Monthly) Extruded Products Shipments and Press Utilization (Monthly) Flat Roll Capacity (Annual) Foil Shipments (Monthly) Forging and Impacts Shipments (Monthly) Rod, Bar, and Wire Shipments (Monthly) Sheet and Plate Shipments (Monthly) End Use Extrusion Shipments by End Use (Quarterly) Fin Stock Shipments by End Use (Quarterly) Foil Shipments by End Use (Monthly) Sheet and Plate Shipments by End Use (Quarterly) Castings U.S. Foundry Castings Shipments (Quarterly) Canada Foundry Castings Shipments (Annual) Recycling New Can Stock (Class) Scrap Receipts (Monthly) Used Beverage Can Reclamation (Annual) Foreign Trade (based on government customs data) Summary of U.S., Canada and Mexico Imports and Exports (by Commodity), Monthly Foreign Trade Online Database - U.S., Canada and Mexico Exports & Imports of Aluminum (By Commodity, by Country) For a complete list of statistical publications and reports visit our bookstore.