Lates News

After Trump announced this week that tariffs on steel and aluminum will be doubled, futures prices tracking the prices paid by US manufacturers for aluminum and steel have skyrocketed. Contracts on the New York Mercantile Exchange (COMEX) on Monday that are linked to aluminum shipped to the US Midwest surged by 54% to their highest level since at least 2013. The price of aluminum used in various materials in the Midwest region, from beer cans to engine blocks and window frames, was 58 cents higher per pound than the London benchmark contract, equivalent to $1,280 per ton, indicating that US buyers may ultimately have to pay about 50% more than international competitors to obtain this metal. COMEX steel futures rose by over 8% in early trading on Monday. Although liquidity in these contracts is relatively low, their movement suggests that tariffs will have the heaviest impact on the US aluminum market. Data from Morgan Stanley shows that over 80% of the aluminum used in the US comes from imports.