Trump Plans to Roll Back Aluminum Tariffs, Prices Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy AA?
Source: seekingalpha
- Aluminum Price Decline: Following reports of President Trump's plans to roll back tariffs, aluminum futures on the London Metal Exchange fell 1.8% to $3,040 per metric ton, reversing gains from the previous session and indicating market uncertainty regarding future supply.
- Market Reaction: In pre-market trading, major aluminum companies Alcoa and Century Aluminum saw declines of 4.8% and 10.4%, respectively, reflecting investor concerns over macroeconomic risks and a trend of profit-taking.
- Tariff Policy Impact: The Trump administration is reviewing the list of products affected by tariffs, with plans to exempt certain items, as trade officials believe that the imposed duties of up to 50% are harming consumers, potentially leading to increased volatility in aluminum prices.
- Shifting Market Sentiment: ING commodities strategist Ewa Mathney noted that macro-driven risk-off sentiment and broad profit-taking are unwinding the strong early-year rally, adding layers of uncertainty to future aluminum pricing and trade flows.
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Analyst Views on AA
Wall Street analysts forecast AA stock price to fall
10 Analyst Rating
6 Buy
2 Hold
2 Sell
Moderate Buy
Current: 60.510
Low
33.00
Averages
46.00
High
58.00
Current: 60.510
Low
33.00
Averages
46.00
High
58.00
About AA
Alcoa Corporation is a vertically integrated aluminum company comprised of bauxite mining, alumina refining, aluminum production (smelting and casting), and energy generation. The Company’s operations are comprised of two business segments: Alumina and Aluminum. The Alumina segment primarily consists of its bauxite mines and alumina refineries, which generally include the mining of bauxite and other aluminous ores, as well as the refining, production, and sale of smelter grade and non-metallurgical alumina. The alumina produced by this segment is sold to internal and external aluminum smelter customers; a portion of the alumina is sold to external customers who process it into industrial chemical products. The Aluminum segment consists of the Company’s aluminum smelting and casting operations along with the Company’s energy production assets in Brazil, Canada, and the United States. It has direct and indirect ownership of 26 operating locations across nine countries on six continents.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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