Trump -fee increases new disturbances in the volatile aluminum market

The global aluminum market is witnessing a new stage of unrest, as clients are in a hurry to assess the potential impact of commercial protectionist policies that US President Donald Trump resolved. Trump made a decision yesterday to impose 25% of customs on all aluminum and steel imports, which is a strict tightening of the commercial system he launched during his first term. This procedure is expected to lead to the exacerbation of costs for buyers in the United States, as well as the redirection of some global trading flow. Aluminum prices High, analysts at Anz Group Holdings, including Daniel Heinz, wrote in a customer memorandum that any customs duties are likely to lead to high prices on US manufacturers by increasing local price differences. They added that larger amounts of Canadian aluminum are likely to turn to European markets, while the United States will strengthen its imports from the Middle East. Read more: The US aluminum sector calls on Trump to exclude the metal of customs duties on Canada. These fees are the beginning of a new phase for the global aluminum market, which has seen major disorders over the past few years due to international sanctions and fluctuations in energy markets after the Russian invasion of Ukraine. The price of the metal rose 7% last year on the London Metal Stock Exchange. Trump actually expanded the extent of customs duties imposed during 2018, which held former President Joe Biden largely. The amendments include the cancellation of the exemptions granted to large suppliers such as Canada, Mexico, Brazil and the European Union, and the increase of the fees imposed on aluminum imports from 10% to 25%. It has been speculated that some countries may get releases again, as Trump seeks to use these measures as pressure as part of his broader efforts to reform US trade relations. The US president has already introduced 10% fees on all imports from China, while 25% fees were announced on Mexican and Canadian goods, but it is still pending. The rise in aluminum prices wrote ‘Goldman Sachs’ analysts, including Eon Denmasor, in’ Ne -mail that “the assumption of the absence of large exemptions means that we expect the increase in aluminum and steel money for prices in the country. Read more: Trump -duties -duties threaten millions of tonnes of steel and aluminum imports despite Trump’s warning yesterday about the possibility of increasing customs on minerals, but the market response to the London Metal Stock Exchange was relatively limited. Aluminum prices first saw a change until 3:16 pm Singapore, while the future iron -RU contracts in Singapore fell 1.4% of the highest closing level since last October. The effect of Trump’s drawings is likely to be greater on aluminum compared to steel, because Washington rely more on the basic metal, in addition to the significant increase in the levels of the fees imposed on it. “Aluminum US buyers will carry a larger part of the cost increase, because the demand for metal is strong and cannot be easily replaced,” says Zhang Ming, an AZ China analyst. He concluded that America has a very limited number of new aluminum production projects.