“US tariffs on the metals steel and aluminium imports from Canada, Mexico and EU are now in place after the exemptions expired on 31th May 2018…….
By Nitesh Shah, Director Research – ETF Securities by WisdomTree
As was the case when they were first announced, the prices of the metals rose. The two metals lost some momentum when the temporary exemptions were announced, but their expiry has unleashed them once again. Supply disruptions are the reason why the price of these metals will rise (countering any damage to US demand from higher domestic prices).
Aluminium is tight already after sanctions have been imposed on Oleg Deripaska (major shareholder of Rusal – the world’s second largest aluminium producer).
In addition China has embarked on a programme to curb production during winter months. A market that was seen to be permanently in surplus last year is now likely to face deficits.”