US aluminum and steel contracts jump with Trump's promise to double the fees

Aluminum and steel futures jumped in the United States, after US President Donald Trump said he would double custom duties on these minerals this week. The aluminum contracts increased by 54% to the US Middle West region to incorporate its highest level since 2013 at the “Comics” scholarship in New York, with a preliminary overview of the high costs with which US factories from Wednesday raising customs duties to 50%. Aluminum is used in a wide range of products, from beer cabinets to motor engines and window tires. The price in the US Middle West has a 58 cents per pound allowance, or about $ 1.280 per ton, compared to standard London contracts. This indicates that buyers in the US may be able to pay about 50% more than their international competitors to obtain the metal. Warnings about the high prices of building materials. Trump hopes that raising fees will lead to the protection of the margins of local factories and stimulate investments in new production capabilities. The shares of US steel and aluminum businesses jumped the subsequent trading until the end of Friday, after the decision was announced. But construction companies have warned that the imposition of extra fees on steel and aluminum, which Trump had previously raised from 10% to 25%, would increase the cost of the basic building material. Future steel contracts on the “Comx” scholarship increased by more than 8% before partially decreasing on Monday. Although future contracts for both metal are relatively low liquidity, the movements indicate that the commercial burden of fees will be mainly on the US aluminum market. It is reported that more than 80% of the aluminum used in the United States is imported, compared to less than 20% for steel, according to “Morgan Stanley”. ‘City Group’ analysts wrote in a note: ‘We expect prices to rise, as the United States does not have sufficient local production capacity for any of the two minerals.’ They added that especially the fees imposed on aluminum “so far have often served a tax on consumers. The world markets are waiting for copper fees. Standard aluminum contracts on the London Metal Stock Exchange are 0.9% to go to $ 2.466 per tonne at 5:50 pm local time.