Korea’s Aluminum Flat Product Prices Rise Amid Global Supply Shifts

Korea’s domestic aluminum flat product prices saw an increase for March deliveries as Choil Aluminum and Novelis Korea raised their prices by 90,000 won per ton. Export prices also rose by $80 per ton, following gains in London Metal Exchange (LME) aluminum prices, which climbed from $2,574.95 per ton in January to $2,653.38 per ton in February, reflecting a 3.05% month-over-month increase.

The price surge in February was influenced by the European Union's ban on Russian aluminum imports and concerns over potential U.S. tariffs under a possible second Trump administration. On February 10, LME aluminum spot prices increased by 1.4%, reaching a three-week peak.

U.S. tariffs on aluminum are expected to drive the Midwest premium higher, with the full impact likely to be passed on to American consumers, according to ING analyst Ewa Manthey. Currently, 82% of U.S. aluminum consumption relies on imports, with Canada and Mexico supplying 65% of that total.

LME aluminum prices also gained 1% following reports that the Ukraine War may be nearing its conclusion, along with news that the EU is planning gradual restrictions on Russian imports. This led to a further price increase, bringing aluminum to around $2,740 per ton. Additionally, LME aluminum stockpiles dropped to 547,950 tons, marking the lowest inventory level since May 2024.

Meanwhile, the first-quarter Main Japanese Port (MJP) premium recently settled at $228 per ton, a 30% increase from the fourth-quarter level of $175 per ton—the highest since 2015. Market analysts attribute this rise to supply concerns following the removal of China's 13% export tax refund on semi-finished aluminum products, which took effect on December 1, 2024.