18.08.202507:25:16UTC+00Aluminum Drops Below $2,600

Aluminum futures have dipped below the $2,600 per tonne threshold as of Monday, August 18th. This movement follows the expansion of the Trump administration's 50% tariffs on steel and aluminum imports, which now encompass hundreds of additional products. These tariffs have been implemented today. Furthermore, President Donald Trump has indicated that additional tariff measures impacting steel and semiconductor chips are expected to be announced in the coming weeks. Despite this, the decline in aluminum prices appears to be restrained due to anticipated strong demand and a tightening of supply conditions. In China, known as the world’s leading producer of aluminum, production is limited to 45 million tonnes annually. This restriction stems from a government policy introduced in 2017 aimed at reducing overcapacity and addressing environmental issues. Concurrently, European markets are experiencing supply constraints due to sanctions imposed on Russia, another major producer globally. On the demand front, optimism is bolstered by China's large-scale dam project in Tibet, which is poised to significantly increase the consumption of key industrial metals.