Metals Newsletter Q2 2023

M&A activity and industry trends

Metals Newsletter Q2 2023

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Metals Market Commentary

After a brief uptick in Q1 2023, metal prices are witnessing a decline due to increasing supply amid lackluster demand, particularly from China. The rebound in metal prices was largely attributed to optimism surrounding China’s reopening post abandonment of COVID-19 controls late in 2022. However, the impact of China’s efforts has been muted primarily due to a patchy recovery in areas such as real estate and manufacturing. China, the world’s largest producer and consumer of steel, is experiencing weakened domestic demand for the metal due to suppressed activity in the steel-intensive construction sector.

Furthermore, a persistent mix of elevated interest rates, recessionary concerns, and the ongoing Russia-Ukraine war continues to exert pressure on the global economic environment – impacting the supply-demand equilibrium of the international metals market.

Despite the prevailing macroeconomic and geopolitical uncertainties, the Federal government’s policy support for infrastructure, reshoring, and green energy development is expected to bode well for the U.S. metals sector.

Additionally, the market is set to benefit in the long term from companies progressively embracing low carbon metal. The North American region, with its high concentration in scrap-fed electric arc furnace (EAF) mills, is well-positioned to benefit from the increased domestic demand for secondary metal.

Near term, the Automotive sector is expected to be the front runner in fueling metals’ growth trajectory. Auto production is ramping up, mainly driven by latent consumer demand and improving semiconductor supply.

Aluminum, both lightweight and highly recyclable, is well-positioned to register strong growth across markets seeking a sustainable, high-performing metal. The green metal with its solid long-term demand fundamentals is garnering increased interest from dealmakers, including both strategic buyers and financial sponsors. In the second quarter, Apollo Global announced a $5.2 billion acquisition of Arconic, a leading provider of aluminum sheet, plate, and extrusions.

Q2’23 Highlights

Deal Count1: 55

Deal Value2: $6.75 B

Y-o-Y Deal Count Growth: 28%

U.S. Metals Sector M&A Trend by Segment (1)(2)

U.S. Metals Sector Deal Activity by Buyer Type(1)

Sources: KPMG Analysis, Capital IQ, Mergermarket, Pitchbook, Equity Research Reports, and other publicly available sources.

We hope you find this information valuable, and as always, feel free to reach out if you would like to discuss in further detail. To read the full report, download the PDF below.


  1. Deal Count / Volume represents both announced and completed transactions
  2. Transaction Value includes deals with terms disclosed

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Metals Newsletter Q2 2023

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