The CETA deal, signed on Sunday October 30
, will allow Canada-produced aluminium metal to be exported into Europe on a duty-free basis, bypassing the EU’s tariff of 3% of the London Metal Exchange aluminium price. Canadian aluminium units coming into Europe are considered to be duty-unpaid, but that will change under CETA.
Metal Bulletin’s duty-unpaid premium stands at $70-85 per tonne, while the duty-paid premium is $130-145 per tonne. The consensus view is that CETA will see more metal coming into Europe from Canada, which will in turn mean less metal staying in the North American market, and that premiums will react accordingly.