New US Tariffs Could Significantly Impact European Aluminium Scrap Exports

Aluminium Scrap

European aluminium recycling faces challenges as US tariffs on scrap imports rise.

The recent announcement of new tariffs by the United States government, particularly on aluminium scrap from Europe, is sending ripples through the European aluminium recycling industry. The sweeping tariff adjustments, which were introduced by US President Donald Trump on April 2, threaten to significantly reduce the flow of European aluminium scrap to the US. With these new measures, aluminium scrap will face a substantial tariff, making it less attractive for US buyers.

Impact of New Tariffs on Aluminium Scrap Exports

The new tariffs, set to take effect on April 9, place aluminium scrap imports from Europe under a 20% tariff, while imports from the UK will face a slightly lower 10% tariff. This comes after the previously established 25% tariff on primary aluminium imports from Europe, which was put in place last month. As a result, the cost of importing aluminium scrap from Europe will be nearly as high as that for importing primary aluminium, significantly altering the economics of aluminium recycling.

Historically, the US had been a major buyer of European aluminium scrap, with many industries using recycled aluminium as an alternative to primary aluminium. The new tariffs, however, will likely make scrap imports much less appealing to US buyers, pushing them to explore other options. This comes after previous expectations that the US would turn to aluminium scrap as a more affordable alternative to primary aluminium, which is now burdened by hefty tariffs.

Reactions from Industry Associations

Industry associations such as European Aluminium and Aluminium Deutschland have voiced concerns over the new tariffs, as they undermine the viability of aluminium scrap exports. These associations had earlier called for export restrictions on scrap due to fears that large-scale shipments of aluminium scrap could exacerbate market imbalances. With the tariffs in place, the likelihood of scrap exports to the US is expected to diminish significantly.

European Aluminium has indicated that it is closely monitoring the situation to determine its next steps regarding export restrictions. Aluminium Deutschland, however, has yet to comment on the matter.

What This Means for the Aluminium Recycling Industry

These new tariffs could lead to a shift in the global aluminium market. If European aluminium scrap becomes less competitive due to high tariffs, it may force US buyers to seek out other sources of aluminium scrap, possibly from domestic markets or alternative suppliers. Additionally, this could put pressure on European recyclers, who may face reduced demand for their products, forcing them to explore new markets or adjust their pricing strategies.

As the situation evolves, the aluminium recycling industry in Europe will need to adapt to these new challenges, either by lobbying for changes in tariff policies or by finding ways to remain competitive in an increasingly restricted global market.

Blanket US Aluminium Tariffs to Have Limited Impact on European Trade Flows

US Aluminium

Trump's 25% Tariff on All Aluminium Imports Will Affect US Consumers, Not European Markets

US President Donald Trump’s announcement of a blanket 25% tariff on all aluminium imports is expected to have minimal impact on European trade flows. This contrasts with earlier plans to impose tariffs specifically on imports from Canada and Mexico. According to market participants, the new approach is unlikely to disrupt European markets as much as the previous strategy might have.

Impact of Blanket Tariffs on Aluminium Trade

Trump’s new tariffs, which will apply to all aluminium imports, are set to be announced soon. This blanket tariff on steel and aluminium is expected to affect all exporting countries without distinguishing between suppliers. Canada, the UAE, and Argentina were the leading exporters of unwrought aluminium to the US last year, but the tariffs will now apply to everyone, making it difficult for countries like Canada to redirect excess supplies to Europe as initially anticipated.

Under the previous plan, markets predicted a shift in trade flows, with more Canadian aluminium potentially moving to Europe. This was expected to reduce European premiums due to an increase in supply, as demand in Europe remained weak. However, under the new tariff strategy, this shift is likely to be less pronounced. The global competitiveness of Canadian aluminium is diminished when tariffs apply universally, making aluminium from other regions, such as the Middle East and South America, less attractive in the US market.

Consequences for US Consumers and Domestic Production

The main consequence of these blanket tariffs will be higher costs for US consumers. While the tariffs could potentially drive up domestic production, increasing capacity will take years. In the meantime, US buyers will face higher prices for aluminium imports, particularly from Canada, as shipping times from these suppliers are shorter than those from more distant countries.

Market analysts believe that, despite the tariffs, US consumers will continue to import from Canada because of these logistical advantages. The blanket tariff strategy is unlikely to redirect a significant volume of Canadian aluminium to Europe, meaning the overall impact on European aluminium flows will be minimal.

Conclusion: A Shift in Costs, Not Trade Flows

In conclusion, Trump’s blanket tariffs on aluminium imports are expected to result in higher costs for US consumers but will have limited consequences for European trade flows. The market will likely experience some adjustments, but European aluminium premiums are not expected to drop significantly as a result of these changes.

US New Tariffs Could Disrupt China's Non-Exempt Metals Exports

China Tariffs

New tariffs on lithium, rare earth magnets, and more could affect China's metal exports to the US.

The United States has announced significant new tariffs on Chinese imports, with a notable focus on metals. While many non-ferrous metals and ferro-alloys have been exempted, some crucial exports from China, like lithium, rare earth magnets, and lithium-ion batteries, will face substantial increases in tariff rates. These changes are set to have a lasting impact on the trade between the US and China, especially in the energy storage and electric vehicle (EV) sectors.

High Tariffs on Lithium-Ion Batteries and Energy Storage

As of April 9, the US will implement an 82.4% tariff on electric vehicle (EV) power batteries and a 57.4% tariff on non-EV lithium-ion batteries from China. This substantial hike in tariffs will make Chinese-made batteries far more expensive and may eliminate the possibility of Chinese EV power batteries entering the US market. US consumers will likely absorb these costs, potentially leading to inflation in the US battery industry, especially in the energy storage sector.

China’s lithium-ion battery exports to the US had already been on the rise, with a 59% increase in exports during the first two months of the year. However, these new tariffs are expected to curb the growth of China's battery exports to the US and negatively affect lithium feedstock prices, which are currently at a four-year low.

Impact on Rare Earth Magnets

Rare earth magnets are another key area of concern, as these products were not exempted from the new tariffs. Despite some uncertainty about the exact tariff implementation, producers in China are anxious about the potential 54% tariff on rare earth magnets. China remains the dominant supplier of rare earth magnets globally, and while the US does have some alternatives, they are mostly focused on military applications with significantly higher prices. This makes it unlikely that the US can fully escape its dependence on China, especially for civilian applications.

China’s exports of rare earth magnets to the US in 2022 accounted for 12% of its total exports, and while tariffs could reduce this figure, China’s competitive pricing in the civil sector ensures its continued dominance in the global market.

Copper, Aluminium, and Hafnium: Other Affected Metals

While copper and aluminium are exempt from this latest round of tariffs, the copper industry remains on edge. US authorities are investigating the potential security implications of copper imports, and there’s speculation that a tariff may be imposed in the future. As for aluminium, Chinese exports are already subject to a steep 70% tariff, which is expected to discourage further aluminium exports to the US, pushing Chinese suppliers to seek alternative markets.

Hafnium, a critical metal used in aerospace applications, will also face a significant tariff hike, moving from 34% to 79%. This change could prompt US buyers to source hafnium from other regions, like Rotterdam, where the tariff is considerably lower.

Conclusion

The new US tariffs on Chinese metals exports are set to reshape the global metals market, particularly for lithium-ion batteries, rare earth magnets, and hafnium. While some sectors, like copper and aluminium, may have avoided immediate tariff hikes, long-term implications for the industry remain uncertain. The tariff increase on key metal exports from China to the US is expected to alter supply chains and increase costs for US consumers, especially in the EV and energy storage markets.

EU to Launch Aluminium Safeguard Probe Amid Rising Import Pressure

EU Aluminium

New U.S. Tariffs and CBAM Adjustments Prompt EU to Rethink Aluminium Trade Policy

Brussels Acts to Shield European Aluminium Industry

The European Commission will launch a safeguard investigation on 19 March to assess the need for trade defense measures on aluminium imports. This move responds to fears that U.S. tariffs will redirect global aluminium flows into Europe.

Washington reintroduced 25% import tariffs on steel and aluminium on 12 March, prompting the EU to act. European producers risk losing U.S. market access while facing increased inflows of diverted metal. Unlike steel, aluminium is not yet protected by EU safeguard measures.

Since 2021, over half of Europe’s aluminium smelting capacity has been curtailed. Today, just 46% of EU aluminium demand is sourced domestically. The Commission warns that continued pressure from imports threatens the survival of remaining producers.

New 'Melt and Pour' Rule and CBAM Reform

In addition to safeguard measures, the Commission will implement a new “melt and pour” rule. This rule defines the origin of metal products based on where they were originally melted—not where they were later processed. It aims to block minimal transformations that allow products to bypass tariffs or dumping duties.

The carbon border adjustment mechanism (CBAM) will also undergo revisions. The proposed update would extend the carbon levy to more aluminium- and steel-intensive downstream products. This adjustment addresses concerns that carbon-intensive imports could undercut EU-made goods, which comply with stricter climate rules.

The EU also plans to address carbon leakage. It will design compensation mechanisms for CBAM-regulated goods exported from the EU, with new anti-circumvention rules due in Q4 2025, before CBAM fully activates in 2026.

Scrap Export Restrictions and Demand Boosts Ahead

To secure domestic raw materials, the EU plans to tighten scrap metal export controls. The Commission will explore reciprocal restrictions on countries that limit scrap exports to the EU and may impose new charges on outbound scrap.

By the end of 2026, the EU will propose new demand-side targets for steel and aluminium usage in critical sectors like construction. These measures aim to support domestic producers while aligning with climate and circular economy goals.

Goldman Sachs Cuts Aluminium Price Forecast on Weaker Global Growth

Aluminium

Trade Tariffs Pressure Aluminium Market Outlook

Goldman Sachs has lowered its aluminium price forecast due to slowing global growth driven by rising US trade tariffs. The US bank now expects LME aluminium prices to average $2,000/t in Q3 2025, rising to $2,300/t by year-end. This is significantly down from its prior forecast of $2,650/t by late 2025 and $3,100/t in 2026.

US tariffs on aluminium imports from key trading partners have weakened global demand and sentiment. Meanwhile, new tariffs announced in April—targeting electronics and pharmaceuticals—may further suppress economic activity. Goldman now sees aluminium demand growth at 1.1–2.3% over 2025–26, down from earlier 2.4–2.6% projections.

Market Faces Surplus, But No Smelter Closures Expected

Goldman Sachs forecasts a global aluminium surplus of 580,000 tonnes in 2025, reversing a previously expected deficit. However, it does not foresee widespread smelter shutdowns, even with prices at the cost curve’s 75th percentile. Still, a prolonged downturn below $2,000/t could eventually force curtailments to stabilize supply-demand balance.

The bank cautioned that downside risks remain, especially if the US-China trade war escalates. Despite near-term weakness, Goldman anticipates a moderate demand-driven recovery in late 2025 into 2026.

The Metalnomist Commentary

Goldman’s aluminium downgrade reflects how industrial metals remain highly sensitive to trade policy shifts. Producers may avoid closures in the short term, but prolonged margin pressure could reshape the supply landscape.

European Aluminium Industry Pushes for Scrap Export Restrictions

Al scrap

Rising Pressure for Scrap Export Controls

The European aluminium scrap market is facing mounting pressure as supply tightness collides with strong export demand. Industry groups such as European Aluminium and Aluminium Deutschland have intensified lobbying for export tariffs to secure domestic scrap supply. Their push comes as the US raises tariffs on primary aluminium imports, potentially boosting American demand for European scrap.

Exports of European aluminium scrap surged in recent years, particularly to Asia. The EU and UK together shipped 1.57mn tonnes in 2024, a 23pc increase compared with 2022. India and China accounted for the bulk of these flows, while exports to the US, though smaller, grew sharply. European Aluminium warned that rising US interest, combined with current supply shortages, risks creating a “full-blown scrap crisis.”

Industry Debate and Market Risks

However, not all stakeholders agree that restrictions are the solution. Scrap merchants argue that supply shortfalls are driven more by weak industrial activity than by exports. Low production in automotive, construction, and machinery has reduced available grades like aluminium turnings, which are essential for European secondary smelters. They caution that tariffs may not address these structural issues and could trigger reciprocal trade barriers, complicating Europe’s own scrap imports.

At the same time, many producers identify high energy costs as the bigger threat to smelter viability. Merchants note that no smelter closures have been directly tied to scrap shortages, while escalating electricity prices have forced cutbacks. Despite this, calls for restrictions continue to gain traction, reflecting a broader trend of resource nationalism as countries prioritize domestic recycling over exports.

The Metalnomist Commentary

The debate over aluminium scrap export restrictions underscores a critical tension between free trade and industrial security. While tariffs may stabilize domestic availability, they risk distorting markets and inviting retaliation. The EU must weigh these risks carefully, especially as global competition for low-carbon feedstock intensifies. Energy costs, more than scrap scarcity, remain the sector’s existential challenge.

Germany Pushes EU to Impose Aluminium Scrap Export Tariffs

Aluminum Scrap

Rising US demand sparks supply concerns and threatens Europe’s circular economy framework

Aluminium Deutschland Warns of Scrap Outflow Risk

Germany's aluminium industry group, Aluminium Deutschland, has urged the EU to impose aluminium scrap export tariffs. This demand follows the United States’ decision to implement a 25% tariff on primary aluminium imports, while keeping aluminium scrap exempt from the tariff.

As a result, US buyers are likely to switch from importing primary aluminium to sourcing cheaper scrap — particularly from Europe. This shift could lead to a serious shortage of scrap for European recyclers, who rely on stable domestic supply for their operations.

US-EU Price Gap Accelerates Market Arbitrage

The arbitrage between US and EU aluminium prices has widened sharply in recent months. According to market data, the premium gap surged from $110/t in November to nearly $700/t in early May 2025. This creates a strong incentive for exporters to redirect scrap to the US market, further tightening EU supply.

Aluminium Deutschland emphasized that this trend could undermine Europe’s recycling industry. President Rob van Gils called for “swift and decisive action” to avoid dismantling years of progress in circular economy infrastructure.

Europe Faces Growing Scrap Scarcity

Europe's aluminium scrap supply is already strained. Sluggish industrial activity has lowered fresh scrap generation, while Asian demand remains strong, forcing EU recyclers to compete globally. If the EU does not act, companies could face escalating shortages, threatening decarbonisation goals and raw materials security.

The Metalnomist Commentary

Germany’s call for aluminium scrap export tariffs reflects a growing geopolitical competition over raw materials. As secondary aluminium becomes a substitute for tariffed primary metal, the EU risks losing strategic feedstock to global arbitrage. Scrap policy will increasingly define the success or failure of Europe’s industrial climate goals.

 

European Aluminium Renews Call for Aluminium Scrap Export Restrictions

European Aluminium Scrap

US Tariff Hike Intensifies Scrap Supply Pressures in Europe

European Aluminium has renewed its push for export restrictions on aluminium scrap following US president Donald Trump’s decision to double tariffs on EU steel and aluminium imports to 50%. The association warns that the move could accelerate scrap outflows to the US, worsening an already tight supply situation in Europe.

The industry group first raised the proposal in 2018 when the US imposed a 25% tariff on all steel and aluminium imports. Scrap aluminium was excluded from the sanctions, making it an attractive alternative for US buyers seeking to avoid higher costs on primary aluminium. With the latest tariff hike, European Aluminium says the outflow has intensified, threatening domestic recycling and semi-fabrication operations.

Rising Global Demand for Aluminium Scrap Fuels Competition

Strong demand from buyers in India and other Asian markets has already strained European scrap supply. These buyers offer higher prices, benefiting from lower labour and energy costs and weaker environmental regulations. Additionally, primary aluminium producers in Europe are increasingly using higher-grade scrap to meet automotive customers’ sustainability goals.

European Aluminium reported that scrap exports to the US surged 273% year-on-year in the first quarter of 2025, already accounting for two-thirds of total exports in 2024. Without swift EU intervention, the association warns that the situation could escalate into a “full-blown scrap crisis,” jeopardizing the viability of Europe’s aluminium recycling and semi-fabrication industry.

The Metalnomist Commentary

The surge in US demand for European aluminium scrap highlights the vulnerability of supply chains to trade policy shifts. For the EU, balancing open trade with the need to safeguard strategic raw materials will be critical. Without targeted restrictions or incentives to retain scrap domestically, Europe risks undermining its own circular economy and low-carbon manufacturing goals.

Japan and South Korea Prepare for Economic Impact of US Metal Tariffs

Japan Manufacturing

Japan Takes a Cautious Approach, While South Korea Moves Quickly to Shield Its Automotive Industry

The imposition of US tariffs on metal products has left Japanese and South Korean industries scrambling to mitigate potential damages. Following US President Donald Trump's announcement of sweeping tariffs, Japan’s metal firms are proceeding with caution. Tokyo is currently working on a strategy to strike a middle ground while preparing for any potential long-term effects. South Korea, on the other hand, has moved quickly to put measures in place to support its automotive industry, which stands to be significantly impacted by the tariffs.

Japan's Response to US Tariffs

In 2024, Japanese exports of machinery and electrical equipment to the US amounted to ¥7.8 trillion ($53 billion), reflecting a 5.3% increase from the previous year. Despite this growth, Japan's metal industry is not experiencing significant immediate impact from the new 24% tariffs imposed on steel and automobile products. However, companies are still closely monitoring the situation to understand the full extent of the potential damages. While some industry leaders remain uncertain, one Tokyo-based battery material producer noted that no damage had been reported yet from clients. Still, Japanese authorities are wary of long-term effects, especially in sectors like electronics and automotive, which would face major setbacks should the tariffs persist.

The Japanese government is refraining from retaliatory measures as negotiations with the US government continue. Japan hopes to reach an agreement that could either reduce the tariffs or potentially exempt the country from them entirely. On April 8, Japan’s Ministry of Trade and Industry (METI) will hold a ministerial meeting to discuss comprehensive measures in response to the tariffs.

South Korea Takes Swift Action to Support Its Economy

South Korea, with a more direct approach, is preparing to unveil measures aimed at mitigating the negative effects on its automotive sector. In 2024, South Korea exported $127.8 billion in goods to the US, including nearly $34.7 billion worth of passenger automobiles, $7 billion in auto parts, and nearly $3 billion in lithium-ion batteries. With such significant exports to the US, the potential impact of these tariffs could be severe.

The South Korean government, led by acting president Han Duck-soo, has vowed to work with the private sector to minimize damage. The government is planning follow-up measures to protect vulnerable sectors, such as small-medium enterprises and mid-sized companies. However, the country’s political instability, with the impeachment of former president Yoon Suk Yeol, may delay the response. South Korea’s aluminium sector is also on high alert, with companies looking to devise strategies to weather the storm.

Additionally, South Korean tech giant LG Electronics has warned that any further escalation in tariffs could have a pronounced impact on its operations, especially if the US introduces import quotas or safeguard measures. The company’s major production sites are spread across South Korea, China, Mexico, and Vietnam. LG's CFO, Changtae Kim, emphasized that higher tariffs would directly affect the company’s competitive position.

Looking Ahead

Both Japan and South Korea face uncertain futures as they navigate the complex landscape of US tariffs. Japan remains cautious, hoping for negotiations to alleviate the pressure, while South Korea moves swiftly to protect key sectors like automotive manufacturing. The coming weeks will be crucial in determining how both nations adapt to the evolving trade situation and whether their efforts to shield their industries from the tariffs will be successful.

European Aluminium Calls for EU Scrap Export Limits

European Aluminium Scrap

Aluminium industry group urges EU action to protect regional scrap supply amid rising export demand and U.S. tariff pressure

Rising Exports and U.S. Tariffs Put Pressure on EU Scrap Supply

European Aluminium has urged the EU to implement export limits on aluminium scrap. This follows increased competition from Asian markets and new U.S. trade measures. In 2024, the EU exported 1.5mn tonnes of aluminium scrap, with over 500,000t going to India alone. Meanwhile, U.S. buyers are now expected to shift toward scrap after Washington imposed a 25% tariff on primary aluminium.

Industry Pushes for Regulation Through the WSR and Circular Economy Act

The association proposed using export fees and tightening the Waste Shipment Regulation (WSR). This 2023 revision now includes scrap metal, offering a legal pathway for restrictions. European Aluminium also called for a new Circular Economy Act to ensure long-term scrap availability and quality. Furthermore, it recommends a dedicated emissions benchmark for recyclers.

Scrap Now Central to Primary Production and Green Goals

Sustainability targets have pushed primary aluminium producers to use more scrap. Improved technologies also enable the use of lower-grade material. As a result, competition for European scrap has intensified. German trade body Aluminium Deutschland previously appealed to its government for similar EU-wide restrictions.

The Metalnomist Commentary

Aluminium scrap is no longer a marginal byproduct—it’s become a strategic resource. With decarbonization and tariffs converging, Europe faces a policy choice: export profits or internal supply security. The latest moves by industry groups show momentum for regulatory intervention.

Rio Tinto Boosts Global Copper and Aluminium Output in Early 2025

Rio Tinto Mining

Amrun Bauxite and Alumina Operations Drive Growth

Rio Tinto increased its global copper and aluminium output in the first quarter of 2025. The UK-Australian producer reported 15mn tonnes of bauxite and 1.9mn tonnes of alumina production from January to March, up 12pc and 3pc year-on-year respectively.

Meanwhile, its Amrun bauxite mine in Queensland exceeded nameplate capacity. Alumina output also rebounded from prior gas supply disruptions. Despite global supply headwinds, Rio Tinto maintained its full-year guidance for all major commodities including 3.25mn–3.45mn tonnes of aluminium and up to 850,000 tonnes of copper.

Aluminium Output Stable Amid Energy Constraints

Rio Tinto’s aluminium production remained flat year-on-year. Its Tiwai Point smelter in New Zealand operated at reduced capacity due to a request from Meridian Energy. However, a production ramp-up is scheduled for late August.

At the same time, the Kitimat smelter in Canada faced energy supply issues that limited further growth. While the US announced new tariffs on aluminium and steel in March, Rio Tinto confirmed minimal short-term shipment impact. Yet, long-term consequences remain uncertain for its Australian smelters.

Copper Output Rises Despite Refining Cuts

Copper output rose across Rio Tinto’s operations in Utah, Chile, and Mongolia. However, refining volumes declined by 10pc owing to depleted stockpiles and technical issues at Utah’s Kennecott site.

As a result, Rio Tinto is expanding the Kennecott mine with a new underground section. The North Rim Skarn, initially scheduled for 2024, will now start operations in the second half of 2025 and is expected to boost copper capacity by 250,000 t/yr.

 

The Metalnomist Commentary

Rio Tinto’s Q1 output results suggest strong upstream resilience, especially in bauxite. However, energy access and refining disruptions remain critical variables. The success of Kennecott’s expansion will be key to meeting 2025 copper targets.

Huayang aluminium smelter to launch in Shanxi by 2026

Huayang

The Huayang aluminium smelter will start in Yangquan, Shanxi, by September 2026. Huayang will develop the project in two phases totaling 394,000 t per year. Phase one begins construction in September 2025 and launches a year later. The first phase will add 294,000 t per year of new capacity.

Capacity and timeline

The Huayang aluminium smelter expands China’s primary aluminium footprint in a key resource base. Shanxi holds large bauxite reserves and strong alumina output. Therefore, the smelter should access stable feedstock and logistics. Meanwhile, the complete design targets 394,000 t per year across two stages.

Feedstock, technology, and market impact

The Huayang aluminium smelter will adopt 600 kA electrolytic baths. This technology offers high efficiency and lower specific energy use. As a result, unit costs and emissions intensity could improve. Shanxi’s integrated chain should further enhance reliability and working capital.

Regional supply will tighten competition for power and contracts. However, phased commissioning reduces operational risk during ramp-up. Therefore, downstream buyers may secure term volumes early. Market participants will track energy pricing and carbon metrics closely.

The Metalnomist Commentary

Huayang’s phased build balances speed with risk control in a feedstock-rich province. If 600 kA lines deliver as planned, cost and carbon performance should strengthen. Watch power tariffs, carbon policy, and start-up curves through 2026–2027.

South32 Mozal aluminium smelter review signals power risk

South32

South32 Mozal aluminium smelter review addresses severe electricity uncertainty in Mozambique. South32 Mozal aluminium smelter review includes a likely value write-down. South32 Mozal aluminium smelter review could trigger a production halt by March 2026.

Mozal faces expiring power contracts with HCB and Eskom in March 2026. The 580,000 t/yr smelter remains exposed to unresolved tariff and supply terms. Therefore, management will reassess the 2025–26 production target and asset value.

Power contract risk and production outlook

Negotiations with HCB, Eskom, and the government have dragged for six years. As a result, South32 warns of a potential shutdown if no deal emerges. The company expects a partial write-down in 2024–25 financial results. Meanwhile, civil unrest forced guidance withdrawal in late 2024. South32 later reset guidance to 350,000 t on an equity basis. It produced 314,000 t in 2023–24 on the same basis.

Mozal’s review spans cash costs, curtailment plans, and capex timing. However, firm terms could still stabilize output through 2026. Immediate focus remains contract certainty and reliable hydropower allocation. Therefore, customers should prepare for supply variability and lead-time changes.

Market context and global smelter pressures

Aluminium smelters consume massive power and face volatile tariffs. Similar pressures hit Rio Tinto’s Tomago and Tiwai Point sites. Energy costs and grid constraints drive curtailments and policy requests. Consequently, price risk and carbon strategies shape smelter competitiveness.

Downstream buyers weigh premiums, logistics, and ESG footprints. Secure contracts can de-risk billet and slab availability. Therefore, procurement teams should diversify sources and hedge exposures now.

The Metalnomist Commentary

Power certainty will decide Mozal’s utilization and margin path. A bankable contract could avoid curtailment and protect regional employment. Watch tariff structure, indexation clauses, and contingency planning through 2026.

Quad Critical Minerals Initiative targets secure and diversified supply chains

Quad grouping

Quad launches coordinated push on mineral security

The Quad Critical Minerals Initiative launches to diversify and secure critical mineral supply chains. The Quad members are the US, Australia, Japan, and India. They aim to counter non-market practices and reduce single-supplier risk. Therefore, the initiative targets coercion, price manipulation, and disruption.

Scope, priorities, and policy context

The Quad Critical Minerals Initiative will strengthen access to ores, processing, and refining capacity. Officials highlighted the need for diverse and reliable global supply chains. However, the specific minerals list remains unspecified at the Quad level. Australia lists 31 critical minerals, while the US lists 50. Meanwhile, ministers discussed securing 36 of those 50 minerals. The effort follows earlier Quad pledges on clean energy supply chains. Therefore, coordination should support EVs, renewables, and defense technologies.

The initiative also intersects with trade tensions and tariff policy. Australia sought relief from proposed US steel and aluminium tariffs. However, no exemption deal has been reached. As a result, commercial terms may influence project timing and location.

The Metalnomist Commentary

This initiative elevates policy coordination into practical supply-chain action. Near-term proof points will be processing projects, offtakes, and permitting wins. Watch how tariff dynamics and domestic politics shape cross-border investment flows.

Dong-A Special Metal Pioneers with CCAW Production Amid Market Shifts

Copper Clad Aluminium Wire (CCAW)

Dong-A Special Metal has marked a significant innovation in the metals industry by initiating production of Copper Clad Aluminium Wire (CCAW), responding strategically to the surging and fluctuating copper prices. This new venture aims to establish a robust presence beyond traditional metal forms like bar stock and ingots, focusing instead on specialized wire products.

Advancing with Copper and Aluminum Integration

The Korean-based company's success in producing CCAW—a bimetallic product that melds the lightness of aluminum with the conductivity of copper—is positioning it as a cost-effective alternative to pure copper wires. CCAW is over 50% lighter and costs about half as much as copper while achieving over 90% of copper's conductivity. This makes it suitable for high-frequency applications and a potential replacement for copper in global industries such as electronics, where it is used in fan motors, transformers, TVs, and refrigerators.

Particle Analysis

The shift comes at a time when many industries are seeking alternatives to expensive copper, with aluminum emerging as a viable substitute despite its lower electrical and thermal conductivity. Dong-A Special Metal move to produce CCAW is particularly significant as it provides a Korean-made source amidst high tariffs on Chinese imports imposed by the Trump administration, underlining the importance of diversifying supply sources.

Expanding Product Lines and Markets

Furthermore, Dong-A Special Metal is expanding its product range to include commercial production of titanium and nickel wires, set to begin this year. These products will be available in dimensions ranging from 14mm to 60mm for titanium and 2mm to 18mm for nickel, targeting specialized sectors such as aerospace, defense, shipbuilding, and chemicals. The company has also equipped itself to produce 1,000 tons of CCAW annually, ranging from 2.6mm to 16mm in diameter, with a copper content of 15%.

The company representative stated plans to utilize the same facilities for titanium and nickel alloy (Invar, Inconel 625, 718) wire products, intending to supply these critical materials to key industries involved in national defense and advanced technology applications.

Financial Moves and Future Directions

Dong-A Special Metal has recently chosen Korea Investment & Securities as the lead manager for its upcoming IPO, accelerating its growth strategy through funds raised from various investors, including BNW Investment, which has invested in Ecopro since 2022. The total investment secured so far is $23.48 million, setting a solid foundation for further expansion and innovation.