Wam
The UAE’s exports of aluminium to the US jumped in the first 11 days of March, data from the US Department of Commerce showed, as buyers stocked up on shipments from their second-biggest supplier before the US tariffs took effect on Wednesday.
So far in March, the UAE exported 68,560.29 metric tonnes of aluminium to the US before the tariffs kicked in, compared to 16,124.88 metric tonnes in all of March 2024. The exports in March are already at a nearly two-year high on a monthly basis.
President Donald Trump imposed 25 percent tariffs on all steel and aluminium imports with the goal of strengthening domestic production.
In 2024, Canada supplied about 70 percent of primary and alloyed aluminium consumed by the US, while the UAE was the second-largest exporter with about 8 percent in total US consumption last year.
Canada, the biggest foreign supplier of steel and aluminium to the US, has announced 25 percent retaliatory tariffs on those metals, along with computers, sports equipment and other products.
US importers are likely to look for alternative sources given the trade tensions with Canada and the threat of increasing tariffs on imports from Canada further, Yulia Buchneva, director at Fitch Ratings, said.
“On average, the business costs of UAE producers are lower than for Canadian ones, according to CRU estimates, while Emirates Global Aluminium is the lowest-cost producer globally,” Buchneva said, referring to figures from a consultancy. She added that the UAE would be able to profitably export the metal to the US even with a tariff.
EGA, one of the world’s largest aluminium producers, said on Wednesday volatility in aluminium prices is expected to continue in 2025 due to tensions in global trade, adding that alumina markets are expected to normalise as more capacity is expected to come online this year.
US users depend on aluminium producers in Canada such as Alcoa and Rio Tinto and will look for alternative supply, analysts have said.
Benchmark aluminium prices on the London Metal Exchange have gained 5 percent this year to $2,675 per metric tonnes, but have retreated from an eight-month peak of $2,736 hit in February.
