This morning in metals news, the still-pending Section 232 investigations into steel and aluminum imports, raw steel production is up 2.7% in the U.S. year-over-year and aluminum has reached its highest point in 2.5 years.
Uncertainty Growing in Aluminum Market
It’s not exactly surprising that some in the aluminum and steel industries are feeling anxious about the Section 232 investigations, still unresolved, initiated by the Trump administration in April.
According to a report in Platts, that’s exactly how some are feeling on the aluminum side. Not only that, the uncertainty is making what was already considered a volatile aluminum market even more volatile.
Another potential consequence of the investigation? The cost of downstream products could go up, according to industry sources cited by Platts.
Raw Steel Production Down From Previous Week, Up For the Year
The American Iron and Steel Institute released its weekly raw steel production data on Monday, and the numbers are both up and down.
For the week ending Aug. 5, production was down 0.4% from the previous week ending July 29. Production for the week ending Aug. 5 amounted to 1,762,000 tons.
Production for the year to date, however, was up 2.7%, with 53,870,000 tons produced through Aug. 5 this year.
Aluminum Heats Up
The durable metal reached a 2.5-year high Tuesday on news of Chinese supply cuts and signs of strong Chinese demand, Reuters reported.
According to the report, 3.21 million tons of production will be shut down in China’s Shandong province.
LME aluminum eclipsed the $2,000/ton mark on Tuesday, reaching as high as $2,007 — the highest since December 2014, according to Reuters.