Aluminum prices increase due to tariffs, impacting demand outlook and causing declines in market

From Yahoo Finance: 2025-06-18 16:00:00

The Aluminum Monthly Metals Index stayed steady as global aluminum prices slightly increased, rising 0.73% from May to June. The Midwest Premium hit a record high of $0.615/lb in mid-June, up 161% since the start of 2025 but has since begun to fall. Declines have started, with spot premiums and futures indicating further drops.

U.S. aluminum tariffs at 50% have raised prices but are impacting demand outlook. Markets are pricing in higher aluminum costs, anticipating possible demand destruction. The Manufacturing PMI sits at weak levels, suggesting a contraction in the U.S. manufacturing sector. Tariffs have led to price spikes, affecting manufacturers.

The UK received a temporary exemption from a 25% aluminum duty increase. Trade negotiations could lower the premium. The UAE and Canada are negotiating aluminum import deals with the U.S., potentially impacting the market. Exchange prices remain stable, with LME prices slightly lower than in 2024, as tariffs affect global demand expectations.

The global aluminum market remains oversupplied, with China yet to reach its output cap. The opening of SDI’s Aluminum Dynamics facility in the U.S. later this summer will add 650,000 metric tons of secondary aluminum, offering price relief. Markets await trade deals and negotiations that could impact aluminum prices globally.

Read more: Aluminum Market Reacts to Tariff-Induced Price Spikes