More winning: Even higher prices for aluminum products in the U.S.

https://www.reuters.com/business/canada-turns-us-europe-iran-war-propels-aluminium-higher-2026-05-27/

Canada turns from US to Europe as Iran war propels aluminium higher
By Pratima Desai and Polina Devitt
May 27, 2026 10:09 AM CDT

LONDON, May 27 (Reuters) - Canada is pushing more of its aluminium towards Europe to make the ​most of higher premiums on offer, after its neighbour the United States imposed a 50% tariff on the metal last year.

A loss of Middle East ‌volumes due to the Iran war has hit Europe hardest and intensified competition with the U.S. for low-carbon supply, driving prices to extreme levels, with policy and prices determining where scarce aluminium is shipped, analysts, traders and aluminium industry sources said.

Disruption in the Middle East, which accounts for 9% of global aluminium smelting capacity, has upended trade flows far beyond the Gulf, industry sources told ​Reuters.

An ensuing tug-of-war is playing out in regional physical market premiums U.S. and European buyers pay above the London Metal Exchange benchmark for aluminium, which is ​used in everything from cars and beer cans to building materials.

"We are in a situation where the Europeans and the Americans ⁠are competing for limited aluminium units," said Bank of America analyst Michael Widmer.

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