Brazil aluminium premiums, especially for metal sold domestically, are facing increased upward pressure in the spot market due to soaring US Midwest premiums, with the industry preparing for potential heavy sanctions on imports into the United States.
Following the release of the US Commerce Department's recommendations, which included a series of tariffs and/or quotas in addition to existing duties in place, the premium for ingot delivered to the US Midwest rose to 14-14.25 cents per lb ($308-314 per tonne) on Tuesday February 20. This represents a 49% increase in the year so far, according to American Metal Market's latest assessment. "This surge in the Midwest premium is already pressuring costs for buyers who have contracts linked to it and it is leading to higher offers in...