Aluminum sector does not move to the United States despite the tariffs

Tariffs in the imported aluminum imposed by US President Donald Trump are successful in changing global trade flows and exaggerate costs for American consumers: Falls on their main goal: Revive local aluminum production.

Instead, in the United States, in the United States, the price of electricity, especially in the United States, is more closing.

In 25% of aluminum tariffs, the impact seems suitable in the physical aluminum market. While providing a global reference in aluminum prices compared to the metal exchange of metal, the actual cost to obtain metal includes regional delivery awards.

This award now reflects the price of the tariff.

In the Stark Contrast, European Awards are noted by JPMorgan analysts by creating an important disagreement by US trade policy directly by US trade policy.

This value will be paid by TROND Olaf Christophersen, a Norwegian-based head financial officer, in view of the lower flow users HydroIt is one of the world’s largest aluminum manufacturers. The company was known as before Norsk hydro.

“Most likely, this will end in a higher price for US consumers,” Christofersen told CNBC, “The tariffs are” transition “.

The low flow of tariffs is already felt TICKET GROUPA hydro client installing load boxes, cars atop. Although the company places most of the majority of goods sold in the United States, as the price of steel and aluminum, it will increase the price by 10%.

However, although tariffs have caused an increase in prices in the United States, they did not strive to revive the energy-intensive process of local aluminum production, in the energy intensive process.

According to the industry, the industry remains access to competitive, long-term power, long-term power.

“Energy costs are an important factor in the total production value in an area,” he said. “High energy costs are the US aluminum industry that forces the US aluminum industry and closings.”

“Canada, Norway and Middle Eastern aluminum spots usually carry out long-term energy contracts or captive power reinforcement facilities.

The latest events that are large in US producers emphasize this strength.

In March 2023 Alcoa Corp announced its permanent closure 279,000 metric tons Intalco SmelterEmpty since 2020, Alcoa could not be able to compete for the long term, “he said.

Similarly, in June 2022 A century aluminumThe largest primary originium manufacturer of the United States was forced Temporarily mass Hawesville, Kentucky Smelter – The largest manufacturer of the North American military-level aluminum – “a direct result of reptile energy expenditures”;

The cost of power required to take advantage of the century “has increased the average of three times in a very short period,” a reduced reduced to last nine to twelve months until normalizing the price.

In recent years in the industry there has not been a respite because there is no requirement for electricity from non-industrial sources.

Christophersen of Hydro spreads as new rivals for strengthening artificial intelligence boom and data centers. He claimed that rapidly consumed the technical sector of the new energy production potential in the United States, nuclear, wind or the Sun.

“The technique sector has a higher capacity to pay more than the aluminum industry,” and noted high-digit edges of the technological sector, often in aluminum manufacturers. Hydro said 8.3% profit margin in the first quarter of 2025, which was 3.5% increase in the previous quarter and the facts reported.

“We will need cheap power to build our opinion and (in the United States). We do not see the opportunity to get this in the existing market,” Cfo said. “The lack of competitive power is the reason why we will be interested in us.”

In the event of non-ignition of internal initial production, tariffs are undoubtedly what Christians caused “change trade flows”.

When the US market entry is more expensive or limited, the metal flows in other directions.

Christophersen described a short time when Canadian is relatively higher than the United States in Aluminum – 25% additional tariffs Aluminum is temporarily more attractive to Europe for Canadian manufacturers on special tariffs. As a result, more European metals would enter the US market to correct the unloaded cavity of the Canadian aluminum.

The price impact is also expanded to the above-adjustable local scrap metal prices, even in accordance with the tariff swollen Midwest Premium.

Hydro, the world’s largest alumini extruder, uses both internal scraps and US operations. The company makes products such as window frames and facades in the country through extrusion, which is the process of dieing aluminum to create a special form.

“We buy us crumbs (aluminum). Local raw materials. But again, the value of the tariff,” Christofersen “,” Kristofersen “.”

“We pay the tariff value, but we quickly passed, so he is the same.”

RBC Capital’s analysts confirmed this transition mechanism for Hydro’s expression, saying “usually higher LME prices and awards will be given to the customer.”

This passage occurred, especially between the clients of Hydro.

RBC, Hydro’s recent results of the “weak spot extrusion sections” and the management, which reflects the slow demand in sectors such as the establishment and construction, noted a reduced leadership.

– CNBC’s Greg Kennedy reported.