Australian government officials warned domestic aluminium producers to stem exports to the United States and avoid threatened tariffs, a diversion that has caused units to flood the already well-supplied Japanese market.
The decline in Australia-US tradeflow comes after Australia, which is exempt from the 10% US Section 232 tariff, was reportedly warned by the United States to stop exporting units there a few months ago.Three sources who claimed direct knowledge told Fastmarkets that following the reported warning, the Australian government suggested to aluminium producers in the country that they should slow their exports to the US or else face the potential of tariffs being introduced."Australian suppliers told us directly that it wasn't exactly an order but it was 'strongly encouraged', we understand that this will continue at least until the end of the year," an informed source told Fastmarkets.Joe Hockey, Australian ambassador to the US, told ABC's AM program last Friday the country did not want to exploit its status as a tariff and quota-free exporter to the US."[Everyone has] fully understood what the deal was and what the...