Commerzbank Warns US Aluminium Supply Strain Risks Demand Destruction
Commerzbank analyst Thu Lan Nguyen reports that US aluminium supply remains tight more than a year after tariffs, with a planned Oklahoma smelter blocked on environmental and ownership grounds, domestic production falling, and high prices and import premiums threatening demand destruction.
Commerzbank's Thu Lan Nguyen notes that more than a year after the imposition of tariffs, US aluminium supply remains tight. A proposed smelter in Oklahoma has been blocked due to environmental concerns and ownership issues, while domestic production has actually declined.
High prices and elevated import premiums are now raising the risk of demand destruction, as end-users may reduce consumption in response to sustained cost pressures. The bank warns that without new supply additions, the market could face further imbalance.
Source: FXStreet Forex News