Customs duties pay "Rio Tinto" to buy aluminum from the US market

The Rio Tinto Group, one of the world’s largest aluminum production companies, operates a refinery and five mosque in the Canadian Province of Quebec, where most minerals are heading in the US market. However, thanks to Trump’s customs duties, it became one of the cheapest for Rio to buy aluminum from the United States and sell it to US customers instead of transporting its metal across the border. Trump’s 50% Customs duties were forced into aluminum imports, which came into effect in June, “Rio” to reduce its shipping to the United States and buy supplies from its competitions, provided these supplies are already in the country. This change in the strategy talked about the move to the move that asked not to reveal their identity due to the sensitivity of the commercial issue. Trump fees confuse the metal market, Trump offers his customs duties as an essential step to protect US industries, and he has already begun to have a widespread impact, as the highly binding metal market in North America has confused the prices of aluminum to much higher levels of global indicators. Companies such as “Rio” are forced to quickly restructure their operations or risk their profits. Also read: Senior CEOs in the aluminum sector: Trump is threatening to crush the request, the merchant of goods, Daril Fletcher, director -general of the Bannockburn Capital Markets, said: However, the Rio strategy faces restrictions because the US aluminum industry does not meet the needs of the local market. With the decline in imports, US aluminum buyers will rely more on the imperfect US stocks that “Rio” has already started utilizing. ‘Rio’ buys US hectares of competitors. The informed people said that the company buys aluminum blocks, known as ‘templates’, from the open market, and that trade companies and some banks participate in these transactions. They explained that the metal displayed in the market is produced by ‘Rio’ competitors, including ‘Alcoa Corp’, ‘Emirates Global Aluminum’ and ‘Century Aluminum’. They pointed out that some of these supplies of warehouses come in a number of US ports. According to some of these people, ‘Rio’ has bought at least 50,000 tonnes of aluminum from the US immediate market since June. On the other hand, during the first half of this year, the company sent 723 thousand tonnes of aluminum to the United States, most of which passed 50%before the customs duties. A ‘Rio’ spokeswoman said the company was not talking about its commercial strategy. Aluminum prices in America exceed other markets. Aluminum prices in the United States have risen above their levels in other international markets since January due to the threat of customs duties. Known as the US Middle West district, which is added to international price indicators to deliver the metal to the region, has jumped 81% since early June. You may also be interested in: “Alaua”: Trump fees added $ 115 million to the cost of aluminum. Despite this increase, prices are not fully reflected in the new customs duties, and for “Rio” there is no incentive to charge aluminum from Canada, where the company’s facilities, stationed in Quebec, benefit from cheap hydroelectric energy and easy transport to the United States. Canada is strongly influenced by aluminum duties and Canada is the largest foreign provider of aluminum to the United States, as it accounts for 53% of the metal imports over the past twelve months, according to trade data issued by the US government. ‘Rio’ says that the customs of aluminum imposed in Canada cost them $ 321 million during the first half of this year. Participants also feel pressure. ‘Alkoa’, the largest US producer, said in July that the US fees on Canadian consignments cost the company $ 135 million during the first half. “The fees have already begun to form international aluminum flow, and have particularly affected the producers in Canada,” said Eva Manethi, an analyst of the Eng Grop Commodity. She added: “Except for the fees, the US aluminum industry suffers from restrictions, as there are only four working fascinations, local productive energy is not sufficient to meet demand, and new factories have high energy costs and long periods to start working.”