Potential return of US tariffs on Canada turns European aluminium market bearish

The aluminium duty-paid market in Europe is set to come under increasing pressure due to fears of excess stock arriving from Canada and a weak Japanese market.

On Monday, Bloomberg reported that the United States is considering re-imposing tariffs on aluminium imports from Canada, according to people familiar with the matter. An announcement could be made by the end of the week. Sources told Fastmarkets that they expect an announcement to be a 10% tariff on aluminium from Canada. Should the tariffs be imposed on Canadian material in the US, more Canadian units will be shipped into Europe to be sold basis Rotterdam duty-paid premiums. “We become the market of choice really, Europe is the next natural home – which is fine if there was demand and some tightness. But right now we’ll be swimming in the stuff,” the first trader added. Market participants said the oversupply of duty-paid units in Rotterdam will only be made worse by the arrival of more Canadian units. “I feel like the duty-paid market is under pressure from all angles. There is...

Published

Justin Yang

Alice Mason

June 23, 2020

16:00 GMT

London