European aluminium premiums topping the list of potential trade disruptions is the incoming Donald Trump administration and the threat of tariffs on U.S. imports from Canada and Mexico, two of the country’s top suppliers of the light metal. Next up is the prospect of the European Union (EU) banning imports of Russian aluminium as part of the bloc’s 16th sanctions package against Russia over its invasion of Ukraine.
Throw high alumina prices and falling London Metal Exchange (LME) aluminium stocks into the mix and it’s a recipe for market turbulence.
Tariffs and supply restrictions in times of crisis, mounting risks and uncertainties are a sure recipe for disaster – it will notably harm most of the downstream aluminium industries in the US and in the EU.
Read the full article: https://www.reuters.com/markets/commodities/global-aluminium-market-faces-year-trade-turbulence-andy-home-2025-01-20/
[Source: Reuters – CME Midwest US, European and Japanese physical aluminium premiums]