$ALUM $DJT $F 5% increase overnight.
“Ford: The Ford F-150 and F-Series Super Duty trucks are known for their aluminum bodies, which have been a significant factor in their fuel efficiency and performance.”
EU & US will develop a metals alliance to mitigate the impact of subsidised Chinese production on global markets as part of their trade deal
EU steel & aluminium makers will be granted a quota system with minimal or zero tariffs to replace President Trump's 50% import tariffs. The system is yet to be finalised.
European Trade Commissioner: "The agreement is clear prospect of joint action on steel, aluminium, copper and the derivatives in what I'd like to call a metals alliance, effectively creating a joint ring-fence around our respective economies through tariff rate quotas at historic levels with preferential treatment,"
At the G7 nations finance meeting in May, officials agreed to tackle "excessive imbalances" in the global economy without explicitly naming China.
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Throughout Jan 2024-Nov 2024, Aluminum prices delivered in the US traded in a stable range b/n $400-$450/ton
Then.....
Former President Trump’s re-election in Nov 2024 sparked a rally as traders began to price in the risk of tariff rhetoric becoming a reality. B/n election day & inauguration day, prices rose by +13%.
While in office, President Trump imposed +25% tariffs on global imports, including those from Canada (the largest supplier into the US). Aluminum prices have since risen by a further +60%.
Midwest Premium for aluminum in the US is currently ~$990/tonne
Sweeping tariffs imposed are reshaping global trade flows & inflating costs for American consumers. But they are falling short of their primary goal: to revive domestic aluminum production.
Instead, rising costs, particularly skyrocketing electricity prices in the US relative to global competitors, are leading to smelter closures rather than restarts.
This cost will ultimately be borne by downstream users
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The Case For Investing In Aluminum With The ALUM ETF $ALUM Also $ZSB https://talkmarkets.com/content/etfs/the-case-for-investing-in-aluminum-with-the-alum-etf?post=425916&userid=123969
