By Eric Onstad
LONDON (Reuters) – The cost of aluminium and steel in the United States hovered near recent peaks on Wednesday after U.S. tariffs of 25% took effect and sparked retaliation from Canada and Europe.
Traders have been ratcheting up U.S.
prices of the widely used industrial metals since U.S. President Donald Trump took office after a campaign vowing a wide range of duties.
Trump aims to protect American steel and aluminium producers by restoring effective tariffs of 25% on all imports of the metals and extending duties to hundreds of downstream products.
U.S.
metals prices spiked on Tuesday when tempers flared between U.S. and Canadian officials.
Trump vowed to double tariffs on its northern neighbour to 50% after Ontario province retaliated by slapping duties on electricity exports to the U.S.
Both sides later retreated, withdrawing the 50% metals duties and electricity duties, leading to some prices paring their gains.
The U.S.
Midwest duty-paid aluminium premium for physical metal soared to a record of 45 U.S. cents per lb on Tuesday, or more than $990 a metric ton, a jump of nearly 20% from the previous session. It later pulled back to close at 41 cents.
It has climbed more than 70% since the start of 2025.
The April contract had not traded yet on Wednesday, but May was up 1.3%, in line with a previous record.
Consumers buying aluminium on the physical market typically pay the London Metal Exchange benchmark aluminium price plus a premium that covers taxes, transport and handling costs.
On the steel market, prices have also surged, with hot rolled coil (HRC) prices in the Midwest jumping to $945 per short ton on Wednesday, up by 37% since the end of January and the highest since February 2024.
While costs for U.S.
aluminium buyers have spiked, they have declined elsewhere as metal is likely to be diverted to other countries.
In Europe, the duty-paid physical market premium for aluminium has dropped to $230 a metric ton, the lowest since January last year.
It has fallen more than 35% since the start of 2025.
(Reporting by Eric Onstad; Edited by Leroy Leo)
