LME WEEK 2019: Tariffs has impacted greatly on US aluminium industry

LONDON, Oct 29 (SMM) – The tariffs on aluminium imports had a great impact on US domestic aluminium industry, said Andy Home, Senior Metals Columnist at Thomson Reuters,.

The US Midwest premium, which overlays the London Metal Exchange (LME) cash price, soared from 10 cents/lb to 22 cents/lb, after the US imposed duties on imports of aluminum and steel on national security grounds in early 2018.

The premium later eased to 18 cents/lb, still much higher than levels seen before the imposition of the tariffs.

Aside from prices, the tariffs have also taken a toll on the supply chain, including primary aluminium and semis, Andy shared his insights on US metals and minerals policy at SMM London Metals Seminar, in conjunction with LME Week.

There are now only eight aluminium smelters in the US, down sharply from 23 in 1998.

Meanwhile, the aluminium industry in China saw prosperous growth. China’s aluminium production accounted for 57% of the global total in 2018, up from a rate of 17% in 2002.