The new Trump fees increase feelings of fear among aluminum investors

The fees for US President Donald Trump in which the markets are drowned in raising aluminum prices and increasing shipping and unloading, as well as transportation operations from the same source, due to the feelings of anxiety that spread among buyers, especially in Japan, according to Yahoo Finance.

Paulter increases in aluminum

Two participating sources said directly in pricing talks that a global aluminum production company is seeking to obtain a price increase of $ 260 per metric ton of Japanese buyers to charge the metal from April to June, an increase of 14 % over the current quarter.
Also read: Trump customs duties threaten Asian countries other than China

Japan is one of the largest aluminum importers

Japan is one of the largest Asian importers of the metal and represents the price increases that it agrees to pay in exchange for charging the metal every quarter of the cash price on the London Metal Stock Exchange as a reference standard for the region.
For the second quarter of 2018, the Japanese buyers agreed to pay a bonus of $ 228 per ton, which is the highest in a decade, with an increase of 30% over the previous quarter.

Fears of Trump’s fees

A source in a Japanese commercial company said that the increase in the proposed installment reflects fears of the new American customs duties on aluminum from Canada and that this may prevent supplies from the Middle East, Australia or other regions that usually serve Asia to North America, which leads to narrowing the next availability and supplied towards Asia, which may cause my price to rise more.

New steel and aluminum fees

The new customs duties imposed by US President Donald Trump on imports from Mexico and Canada entered into force on Tuesday.
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Trump also announced last month plans to impose customs duties by 25% on all steel and aluminum imports to the United States from March 12.
The source said, “The jump in the offer was surprising, as the instant price installments in Japan are hovering around $ 180 per ton due to the poor demand and efforts to reduce the stock by the end of the fiscal year in March,” adding that the talks may last long due to the wide gap between the expectations of buyers and suppliers.

Negotiations with Japan

The last round of the quarterly negotiations took about a longer month than usual until it concluded.
Japan’s influence has declined in price negotiations with aluminum imports to almost half over the past two decades amid twice the local demand, prompting the producers to give priority to the interests of the largest buyers.