Ample availability of aluminum in Europe coupled with a newly authorized U.S. import tariff is putting pressure on EU premiums. Duty-paid premiums for aluminum were off 3% on Friday, March 3 from the prior week, while duty-unpaid premiums dropped about 2% during the same period. The new U.S. import tariff on aluminum (and steel) takes effect March 23.
Some market participants believe the EU premiums have already bottomed out, and with the U.S. facing a supply shortage, aluminum will continue shipping into U.S. ports to meet mill demand, with increased costs passed along through the supply chain. The process may take a few years to settle out, but once the U.S. is able to meet domestic demand, market participants expect overseas aluminum will be diverted to other markets rather than face U.S. tariffs.
We will continue to keep you updated on market conditions through our website news section, so check back often. Metro Alloys has successfully served its clients for more than 30 years in all market conditions and we encourage you to contact your sales representative, Marvin Fish, Gary Kamp or Abby Frank with any questions.