Market participants in the European Union expressed uncertainty on how the flow of European-produced aluminium to the United States will be impacted by a deal to between the US and EU to replace Section 232 import tariffs with a tariff-rate quota (TRQ) system.
"The news is still fresh and it is not clear yet what it means for the market," one European trader told Fastmarkets.
"On the European side, there may be an increased movement of goods, although less likely with current freight rates. But it's more likely for material to flow from Europe toward the US, especially as US premiums are much higher," the same trader said.
The agreement,
announced this past weekend, will remove the 10% tariffs on all European-produced imports of aluminium that were previously
enacted by former US President Donald Trump in 2018 under Section 232 of the US Trade Expansion Act of 1962.
"[The new] arrangement will remove European Union tariffs and lower costs for American families," the
White House said in a press release dated Sunday October 31.
"The United States and the European Union also used the strength of their partnership to...