Upstream weekly: Trump tariff continues spark tension in the aluminium industry; NALCO unlocks new milestone
The aluminium industry has been under the radar ever since Donald Trump imposed tariffs on Canada, Mexico, and China. However the latest update has sent another shockwave amongst the industry. In a controversial move, U.S. President Donald Trump has announced a 25 per cent tariff on all steel and aluminium imports, pushing major trade partners to seek exemptions. Scheduled to take effect on March 4, 2025, the tariffs have drawn widespread criticism and raised fears of escalating trade tensions. What will happen next is the most common and highly anticipated question. However, other important updates surrounding the upstream aluminium industry includes Nalco setting a new benchmark with 3-fold increase in net profit, Hydro’s 2024 performance, and others have created significant impact under the upstream sector of the aluminium industry.
U.S. President Donald Trump had announced plans to impose a 25 per cent tariff on all aluminium and steel imports. Speaking to reporters aboard Air Force One, Trump stated that the tariffs would apply to metals imported from all countries but did not specify when they would take effect.
Australian Prime Minister Anthony Albanese scheduled a call with U.S. President Donald Trump to seek an exemption for Australia from the newly imposed 25 per cent tariffs on steel and aluminium. The announcement of these tariffs sparked a sharp market reaction, erasing $15 billion from the ASX. Within the first hour of trading, the benchmark ASX200 fell by 0.5 per cent.
To know more: https://www.alcircle.com/news/billions-wiped-off-asx-as-trump-announces-25-tariff-on-aluminium-steel-113261
Following U.S. President Donald Trump's announcement of new tariffs on aluminium and steel—just days after delaying tariffs on North American neighbours—the European Commission has pledged to take action to safeguard the European Union's interests.
To know more: https://www.alcircle.com/news/eu-warns-of-counteraction-against-donald-trumps-new-aluminium-and-steel-tariffs-113267
In a policy shift announced on Monday, February 10, the U.S. government declared a 25 per cent tariff on all primary aluminium imports, set to take effect on March 4, 2025. Signed by President Donald Trump, the executive order aims to strengthen the domestic aluminium industry and tackle ongoing concerns over unfair international trade practices.
In a controversial decision, U.S. President Donald Trump has announced a 25 per cent tariff on all steel and aluminium imports, prompting major trade partners to seek exemptions. Set to take effect on March 4, 2025, the tariffs have faced widespread criticism and sparked concerns about potential trade wars. However
To know more: https://www.alcircle.com/news/heres-how-these-5-countries-responded-to-the-us-aluminium-tariff-imposition-113279
European Aluminium, representing the entire European aluminium value chain, is deeply concerned about the U.S. decision to impose a 25 per cent tariff on all aluminium imports. This measure risks straining transatlantic trade relations between two longstanding economic partners.
To know more: https://www.alcircle.com/press-release/european-aluminium-voices-deep-concern-about-us-tariffs-on-aluminium-113281
On February 10, 2025, newly re-elected U.S. President Donald Trump signed executive orders imposing a 25 per cent tariff on aluminium and steel imports, effective March 12, 2025. Enforced under Section 232 of the Trade Expansion Act of 1962, this move intensifies a long-anticipated trade war, despite warnings from Europe and China.
To know more: https://www.alcircle.com/news/will-trump-go-easy-on-australian-japanese-aluminium-and-steel-tariff-talks-heat-up-113286
The U.S. aluminium sector is in crisis, with only four operational smelters remaining. Despite the Trump administration’s 25 per cent tariff on steel and aluminium imports, the primary aluminium industry continues to decline, burdened by high energy costs and intense competition from overseas, particularly China.
To know more: https://www.alcircle.com/news/us-aluminium-industry-faces-crisis-as-smelter-closures-undermine-tariff-protections-113288
On December 4, 2024, President-elect Donald Trump announced that Peter Navarro, 75, will serve as Senior Counsellor for Trade and Manufacturing in his new administration. According to Trump’s posts on Truth Social, Navarro will be responsible for promoting and articulating the administration’s Manufacturing, Tariff, and Trade Agendas. A key trade advisor during Trump’s first term, Navarro is set to once again play a crucial role in shaping U.S. economic policy.
Following Donald Trump's decisive statement—"No exemptions, no exceptions"—on February 11 regarding a 25 per cent tariff on imported aluminium and steel, India’s state-owned National Aluminium Company Limited (NALCO) has provided key insights into the potential global price impact. NALCO highlighted that these tariffs could pressure global aluminium prices, mirroring the trends observed in late 2018, 2019, and 2020 after similar trade measures were introduced during Trump’s first term.
National Aluminium Company Ltd (NALCO), a leading Indian public sector enterprise with integrated operations spanning mining, metal, and power, has reported an extraordinary 232.83 per cent year-on-year surge in net profit for the third quarter. The company's profit soared to INR 1,566.3 crore (USD 180 million), a significant rise from INR 470.6 crore (USD 54.12 million) in Q3 FY24. This remarkable growth was fuelled by a 39.3 per cent increase in revenue from operations, which climbed to INR 4,662.2 crore, compared to INR 3,347.6 crore in the same period of the previous fiscal.
Australia has addressed the ongoing trade discussions concerning its aluminium exports. On February 13, Trade Minister Don Farrell stated that the surge in Australia's aluminium supply to the United States was carried out with Washington’s full acknowledgment and approval. This development comes as Canberra continues to seek an exemption from U.S. tariffs on aluminium and steel. However, the move has sparked controversy.
To know more: https://www.alcircle.com/news/trade-minister-don-farrell-australias-aluminium-exports-done-with-us-approval-113303
Bauxite and alumina news update
Norsk Hydro faced a challenging 2024 but showed signs of overall growth. The year was marked by notable financial, environmental, and social achievements. Despite a decline in adjusted Return on Average Capital Employed (RoaCE) from 22.2 per cent in 2022 to 8.5 per cent in 2024, the company reported an adjusted EBITDA of NOK 26.3 billion. Hydro remains committed to achieving its profitability target of over 10% across the cycle.
As of February 13, the SMM regional weighted index stood at RMB 3,391 per tonne, reflecting a week-on-week decline of RMB 411 per tonne. By region, Shandong recorded prices between RMB 3,250-3,350 per tonne, down RMB 425 per tonne W-o-W; Henan ranged from RMB 3,350-3,450 per tonne, down RMB 375 per tonne W-o-W; and Shanxi reported RMB 3,250-3,450 per tonne, marking a decrease of RMB 350 per tonne W-o-W.
ABX Group has announced the termination of its 2017 agreement with Core Refining, stating that it no longer requires the company's intellectual property (IP) for its ALCORE Project in Tasmania. Initially, ABX licensed Core Refining’s IP to process various raw materials using fluorine acids, enabling the production of aluminium fluoride from bauxite. The project was carried out under ALCORE, an ABX subsidiary in which the company holds an 83% stake.
To know more: https://www.alcircle.com/news/abx-concludes-licence-agreement-with-core-refining-as-its-alcore-project-advances-113283
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