Core Viewpoint - Glencore has reduced its stake in Century Aluminum by 10% to 33%, benefiting from increased profits in local aluminum smelting due to U.S. import tariffs on aluminum, resulting in several million dollars in gains [1] Group 1: Company Actions - Glencore is the largest shareholder of Century Aluminum and supplies alumina to the company while purchasing nearly all of its North American aluminum products for U.S. customers [1] - The reduction in Glencore's stake comes after the U.S. government raised aluminum import tariffs to 50% on June 4, aimed at encouraging domestic aluminum production [1] Group 2: Industry Context - Century Aluminum is the largest primary aluminum producer in the U.S., with a production of 690,000 tons of aluminum in 2024 [1] - According to Trade Data Monitor, U.S. aluminum imports are projected to be 3.94 million tons in 2024, indicating a significant market size [1] - Producers must ensure that their product prices cover the tariffs to continue shipping aluminum to the U.S. [1]

Core Viewpoint - The U.S. aluminum market is experiencing record-high premiums due to increased tariffs and global supply constraints, significantly impacting pricing and trade dynamics [1]. Group 1: Tariffs and Pricing - On June 4, President Trump doubled the aluminum import tariff to 50% to support domestic aluminum production [1]. - As of now, the Midwest premium for aluminum has surged, with the price for 25 square millimeter aluminum core cable reaching a record high of 88.10 cents per pound [1]. - At an aluminum price of $2,850 per ton, U.S. sellers will need to pay $4,792 per ton in the spot market, which includes a tariff of $1,425 per ton, up from $560 per ton at the beginning of the year [1]. Group 2: Supply and Demand Dynamics - The increase in tariffs is attributed to a decline in U.S. aluminum inventories and the perception that tariffs will be permanent, especially after trade negotiations with Canada were halted [1]. - In the previous year, the U.S. imported over 2.7 million tons of aluminum from Canada, accounting for 70% of total imports [1]. - Analyst Tom Price from PanmureLiberum predicts a supply shortfall of 1.8 million tons in the aluminum market this year [2]. Group 3: Market Sentiment - There has been a shift in sentiment among traders, with those who were optimistic about reaching a trade agreement now abandoning their positions [1]. - U.S. consumers are facing intense competition in aluminum procurement due to the current market conditions [1].

Core Insights - In July, U.S. primary aluminum imports decreased by 40% month-over-month, marking the first full month of President Trump's doubled import tariffs on raw aluminum [1] - The total amount of unwrought aluminum imported in July was 171,132 tons, down from 286,303 tons in June [1] - The average import volume for the first half of 2025 is projected to be 304,236 tons, with Canada accounting for 70% of total imports during this period [1] - Domestic aluminum inventories in the U.S. are reportedly decreasing at a rate of 40,000 to 80,000 tons per month, with total estimated inventories around 400,000 tons [1]

Group 1 - In July, the U.S. aluminum imports decreased by 40% month-over-month, totaling 171,132 tons compared to 286,303 tons in June, marking the first full month of increased tariffs on aluminum [1] - The U.S. maintains its aluminum tariffs at 50% despite reaching trade agreements with several countries in July [1] - The average aluminum import volume for the first half of 2025 is projected to be 304,236 tons, with Canada accounting for 70% of total imports [1] Group 2 - As of early 2025, approximately 74,900 tons of aluminum have arrived at the Port of New Orleans, with 24,900 tons through the Port of Baltimore and 35,400 tons through the Port of Los Angeles [2] - Since January 1, a total of 635,630 tons of aluminum have been received in the U.S. [2]