LMEWEEK-US aluminium price rise spurs deliveries from Canada

By Polina Devitt

LONDON, Oct 15 (Reuters) - Canadian aluminium producers have increased deliveries to the United States in recent weeks as U.S. prices on the physical market have risen to reflect the 50% import tariffs imposed by President Donald Trump earlier this year, analysts said.

The tariffs levied in June aimed to boost domestic aluminium production and encourage investment in capacity for the metal used in the power, construction and packaging industries.

Initially, Canadian producers diverted their aluminium to Europe. But that flow is reversing as the aluminium inventories, which had provided a buffer for U.S. consumers, have shrunk.

NOT 'FULL PACE' YET

"There is some revival in aluminium deliveries to the U.S. but we have not reached full pace yet," Jean Simard, CEO of the Aluminum Association of Canada, told Reuters.

Simard was referring to the trade flows in September and October that have yet to appear in public customs data.

Imports of aluminium from Canada at 2.7 million metric tons last year amounted to 70% of total shipments to the United States, according to information provider Trade Data Monitor.

Aluminium consumers buying on the physical market pay the London Metal Exchange CMAL3 price, around $2,750 a ton, plus the Midwest premium AUPc1 to cover taxes, freight and handling costs.

The premium hit a record $0.77 per lb or $1,697 a ton, on October 6, a rise of 250% since January.

"The U.S. Midwest premium is effectively fully pricing in that 50% tariff," BNP Paribas analyst David Wilson said.

Reduced pressure from Canadian aluminium has in turn led to a rise in the European duty-paid aluminium premium EPDc1, which at $266 a ton has jumped 46% since June.

Canada's exports of unwrought aluminium to the U.S. fell by 22%, or by 410,600 tons, year-on-year to 1.4 million tons in January-to-August, according to the Trade Data Monitor.

Its data showed that in August, 123,474 tons were delivered to the U.S. from Canada, down 51% from March.

Meanwhile, Canada's aluminium deliveries to Europe jumped 94% to 189,320 tons in the first eight months of 2025. In the U.S., aluminium stocks in Comex warehouses AL-TTLTTDY-STX at 7,661 tons are down 73% since January.

"Without new trade agreements, there's room for further increases in the Midwest premium," said Edgardo Gelsomino, head of aluminium research at Wood Mackenzie.