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Constellium |
Price increase aligns with surging Midwest premium and looming U.S. tariffs on Canadian aluminum imports
Constellium Raises Flat Rolled Aluminum Prices by 15¢/lb
Constellium, a leading French aluminum producer, has increased the price of all flat rolled aluminum products shipped to the U.S. market. The price hike, effective immediately, amounts to a minimum of 15 cents per pound. The company did not disclose specific reasons for the adjustment and has yet to comment publicly on the decision.
This move follows a tightening North American aluminum supply landscape. Market participants suggest that uncertainty surrounding upcoming U.S. aluminum tariffs could be influencing upstream price adjustments. Constellium’s action signals a broader trend as producers seek to mitigate anticipated cost pressures.
U.S. Tariff Expectations Drive Midwest Premium Surge
The timing of Constellium’s increase coincides with a sharp rise in the Midwest premium — the delivered price of P1020 aluminum in U.S. Midwest warehouses. This benchmark has approached its highest level since June 2022, reflecting mounting concerns over supply constraints.
Market speculation centers on proposed dual 25% tariffs targeting Canadian-sourced aluminum. These tariffs, expected to be enforced in early March, could significantly impact U.S. import flows. Canada remains one of the United States' primary aluminum suppliers, making the policy shift especially disruptive for domestic buyers.
If enacted, the tariffs would apply both at a regional level and across Canada nationally, pushing buyers to seek alternative supply chains. As a result, buyers are accelerating purchases ahead of the tariff rollout — further pressuring prices.
Outlook for U.S. Aluminum Buyers Grows More Complex
Constellium’s decision to raise prices reflects broader volatility in the aluminum value chain. Without clear guidance from the company, market watchers tie the move to shifting trade dynamics and rising input costs. As flat rolled aluminum remains essential across construction, automotive, and packaging sectors, downstream manufacturers may soon face pass-through cost increases.
Industry players now closely monitor both U.S. policy announcements and global aluminum price signals. Strategic sourcing and contract adjustments will be critical as the market braces for a turbulent second quarter.
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