Global aluminium prices are being driven higher by a rare squeeze on supply, rising demand and US President Donald Trump’s tariffs, with analysts predicting the situation will get worse in the coming months.
Regional US prices have been on a tear this year as the result of Trump imposing a 50 per cent import levy on the metal, which is used in industries such as cars and packaging. The so-called Midwest premium — the premium above the London price for US delivery — has jumped 177 per cent and is hovering around its highest level in over a decade at more than 70 cents per pound.
The London Metal Exchange price, the global benchmark, has also climbed by about 17 per cent since its April low following Trump’s sweeping range of “liberation day” tariffs.