Aluminum Drops Below $2,600

Aluminum futures slipped below the $2,600 per tonne mark on Monday, August 18th, after the Trump administration widened the scope of its 50% tariffs on steel and aluminum imports to include hundreds of additional products, which came into force today. President Donald Trump also signaled that further tariff measures targeting steel and semiconductor chips would be announced in the coming weeks. Even so, the downside for aluminum prices remained limited amid expectations of robust demand and tighter supply conditions. In China, the world’s largest aluminum producer, output is capped at 45 million tonnes annually under a government policy introduced in 2017 to curb overcapacity and address environmental concerns. At the same time, European markets continue to face constrained supply due to sanctions on Russia, also a key global producer. On the demand side, sentiment was supported by China’s mega dam project in Tibet, which is set to boost consumption of key industrial metals.