According to foreign media reports, U.S. Commerce Department data shows that the United Arab Emirates aluminum exports to the United States increased significantly in the first 11 days of March, mainly because buyers stockpiled aluminum from the United Arab Emirates before the U.S. steel and aluminum tariffs took effect on Wednesday (March 12). The United Arab Emirates is the second-largest aluminum supplier to the United States.
In March, before the tariffs took effect, the UAE exported 68,560.29 tons of aluminum to the United States, compared with 16,124.88 tons for the whole of March 2024. According to Yuefeng Aluminum comparison, in March, the UAE's aluminum export output to the United States has reached the highest level of monthly aluminum imports in the United States in the past two years.
US President Donald Trump has announced a 25 per cent tariff on all steel and aluminium imports into the US.
In 2024, Canada's supply of primary and alloyed aluminum to the United States accounted for about 70 percent of U.S. aluminum consumption, and UAE supply accounted for about 8 percent of total U.S. consumption.
Canada, the largest supplier of steel and aluminum to the United States, has announced retaliatory tariffs of 25 percent on steel and aluminum, as well as computers, sports equipment and other products.
Yulia Buchneva, director of ratings at Fitch Ratings, said that given trade tensions with Canada and the threat of further tariff increases on Canadian imports, U.S. importers are likely to look for alternative sources.
"According to CRU's estimates, the average cost of doing business for aluminum companies in the UAE is lower than that of aluminum companies in Canada, and Emirates Ring Aluminum (EGA) is the lowest cost aluminum company in the world." Buchneva cites data from a consulting firm. She added that even with the tariffs, the UAE would be able to profit by exporting aluminum products to the United States.
Uae-based Global Aluminum said on Wednesday that it expects aluminum prices to remain volatile in 2025 due to global trade tensions. He added that with more capacity expected to come online this year, the alumina market is expected to return to normal.
Benchmark aluminum prices on the London Metal Exchange (LME) have risen 5 percent this year to $2,675 a tonne, down from an eight-month high of $2,736 in February.
