US aluminium premiums spike to a record $900/t, fueling hope for Novelis’ bottom line boost. But how?

The soaring price premiums for aluminium on the physical market in the United States are believed to benefit Novelis, the US subsidiary of Mr Kumar Mangalam Birla-led Hindalco Industries.

A Reuters report on March 5 highlighted that aluminium premium prices in the US physical market surged to a record high of $900 per tonne, up nearly 60 per cent since the start of 2025, on the account of looming threats of 25 per cent tariffs on aluminium and steel imports by the Trump administration. This increase in the so-called Midwest premium over the LME prices is set to boost Novelis' bottom line.

Utsav Verma, Head of Research - Institutional Equities, Choice Broking also confirmed that the immediate impact of aluminum tariffs by the US could be positive for Novelis, as the spike in US aluminium Midwest physical premiums could enhance the company's profitability.

But there is a condition applied. The benefit will be realised only when Novelis is granted an exemption from the US import duties.