Alcoa to Reap Benefit from Hefty U.S. Tariff on Russian-Made Aluminum

The analysts noted that the aluminum imports from Russia by the U.S. recorded marginal decline during the previous year.

SEATTLE (Scrap Monster): According to Jefferies analysts, Pittsburgh-based aluminum producer, Alcoa, is likely to benefit from the U.S. imposition of hefty tariffs on Russian-made aluminum.

As per reports, the U.S. plans ti impose 200% tariff on Russian-made aluminum, in response to Russia’s invasion of Ukraine and speculations that Russian aluminum is being dumped into the U.S. market.

The analysts noted that the aluminum imports from Russia by the U.S. recorded marginal decline during the previous year. The imposition of such steep tariffs is expected to put an end to U.S. imports of aluminum from Russia and lead to tightening of the U.S. aluminum market. Although, Jefferies shared cautious near-term outlook on the metal, Alcoa, in particular, will benefit from the measure.

Imports had accounted for up to 90% of primary aluminum used in domestic manufacturing, Canada being the largest supplier. The proposed 200% tariff on Russian-origin aluminum is likely to weigh on supply-demand balances of the metal and result in higher regional premiums. It must be noted that U.S. sales made up nearly 45% of Alcoa’s third party sales over the past three years.

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