Aluminum prices soar on Trump tariffs, global shortages, and China supply chain moves
by Inside China Business [1-2-2026].
American buyers of aluminum are paying record spreads over global benchmarks, amid Trump's 50% tariffs and worldwide shortages of industrial metals.
A small handful of US firms are benefitting from the squeeze and are even modestly increasing production. But the shortage of aluminum globally is 2 million tons per year.
Outside China, production of aluminum continues to decline.
Chinese aluminum smelters have the capacity to close the gap and lower prices. But regulators here are prioritizing China's domestic supply chain for bauxite, and have placed hard ceilings on aluminum production, and reduced exports of finished aluminum products.
Closing scene, Blue Moon Valley, Lijiang, Yunnan
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