Citi Calls Midwest Aluminum Premium Underpriced Following Tariffs -- Market Talk

Dow Jones
12 Feb
 

15:16 ET - The new tariffs on steel and aluminum imports into the U.S. are lifting the Midwest premium - a surcharge applied to aluminum sold in the U.S. to account for transporting the metal to a buyer. But the premium - which currently trades between 28 and 30 cents a pound, according to price assessment firm Fastmarkets - may still be below the value it needs to be to fully account for new tariffs, says Citi Research in a note. "This blanket tariff is expected to bolster the [Midwest premium], which is currently underpricing such a measure," says Citi, adding that it expects the gamut of tariffs pushed by President Trump to push the premium to roughly 40 cents a pound, nearly the all-time high according to data from Fastmarkets. (kirk.maltais@wsj.com)

 

(END) Dow Jones Newswires

February 11, 2025 15:16 ET (20:16 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10