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Novelis closes on Aleris purchase

  • Market: Metals
  • 14/04/20

Atlanta-based aluminum rolling mill Novelis closed today on its $2.8bn acquisition of competitor Aleris, adding 13 plants across North America, Europe and Asia to its operations.

The company cleared all remaining regulatory hurdles last week when it received permission from EU regulators to sell Aleris' Duffel, Belgium, automotive sheet mill to Liberty House Group. Novelis initially agreed to acquire Aleris in July 2018.

Following the transaction, Novelis must also find a buyer for the Lewisport, Kentucky, mill to satisfy US antitrust requirements.


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03/04/25

US battery costs face sharp rise on tariffs

US battery costs face sharp rise on tariffs

London, 3 April (Argus) — Battery cells imported into the US market face a sharp cost increase following the imposition of US president Donald Trump's new tariff regime. The US last year imported $23.8bn worth of battery cells, according to trade data, mostly from China, Japan and South Korea, all of which have been hit with "reciprocal" tariffs after Trump's executive order was signed on 2 April. China, by far the largest supplier of battery cells to the US market, is now subject to an effective 54pc tariffs, with the extra 34pc duty on top of 20pc blanket duties introduced by the administration of former US president Joe Biden. Battery cell imports to the US from China last year amounted to $16.45bn, 70pc of the total, up from just $2bn in 2020. The new tariffs would add $8bn to this cost for US carmakers and battery pack producers. Japan and South Korea, long-standing US allies and partners in battery cell production, face tariff rates of 24pc and 25pc, respectively. The US last year imported $1.7bn worth of battery cells from Japan and $1.3bn from South Korea. Despite the tariffs, there is potential that Japan and South Korea could eat into China's share of US imports, because of the gulf between their respective tariff rates and being the world's only real alternative producers at this point. A longer-term outcome could be that the US domesticates some of this battery cell production, a trend that was already under way, thanks to Biden's Inflation Reduction Act, which allocated federal funding to battery giga-factories and other battery-related projects throughout the US. But building battery cells is not simple. The US will need access to raw materials, some of which are heavily affected by the new tariffs. Cell-making technology, controlled by the three Asian countries, could be included in any retaliatory measures. "The Trump administration's 'Liberation Day' announcement on tariffs are the biggest trade shock in history, representing a historic shift away from the long-term trend towards free trade," chief economist at investment bank Macquarie Ric Deverell said. "The tariff increase far exceeds earlier expectations, highlighting the strong 're-industrialisation' ideology of the Trump administration." Battery materials impact mixed The impact on key materials for the battery supply chain is mixed, with some metals and pre-cursor materials exempted from the new measures, while some key materials are included. Lithium carbonate, lithium hydroxide, cobalt sulphate, cobalt metal, manganese dioxide, natural graphite powder and flakes all are exempt from new additional tariffs. Key materials that are not exempt include nickel sulphate, manganese sulphate, phosphoric acid, iron phosphate and synthetic graphite, all of which will be included in the tariff regimes implemented on individual countries. The US has no nickel sulphate production and imports most of its material from Belgium and Australia, which exported 1,872t and 1,060t to the US last year, respectively. Tariffs on Belgium will fall under the EU, which will be applied at 20pc, while Australia is subject to a tariff of 10pc. Indonesia, the world's largest nickel producer, is subject to a tariff of 32pc, although so far it has not supplied material to the US. Total US imports of nickel sulphate last year reached 3,738t, up from just 1,125t in 2020. With regard to synthetic graphite, another essential item for battery cell production, the US imported 115,778t in 2024, up substantially from 30,109t in 2020. Most of this came from China, at 74pc of the import market. This material now will be subject to 54pc tariffs, significantly increasing this cost for US battery cell producers. By Thomas Kavanagh and Chris Welch US lithium-ion battery imports by country $bn Feedstock materials exempt from 2 Apr tariffs t US manufacturing investments by stage of supply chain $bn Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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UK steel service centre Malcolm Clarke to close


03/04/25
News
03/04/25

UK steel service centre Malcolm Clarke to close

London, 3 April (Argus) — Manchester-based steel service centre Malcolm Clarke will close by summer this year, the company said in a letter to customers and suppliers. The company said any existing and new orders will be fulfilled in full and on time, ahead of its target closure date of June 2025. The closure may be slightly later than this date after its "orderly winding down", the company said. Suppliers will be paid before the closure, it added. Malcolm Clarke in its financial results to June 2024, published on 2 April, announced that it would cease trading, so its accounts had been prepared "on a basis other than going concern". "The business environment in which we operate has become increasingly unstable, with unpredictable shifts in market and regulation making it very challenging for small- to medium-sized participants in the day-to-day spot market," the company told Argus . "Despite our best efforts to adapt and evolve, we do not envisage a short- to medium-term future where the situation is likely to improve significantly," it added, suggesting changes to the market were structural and permanent. The business, which was incorporated in September 1970, has two heavy decoiling lines and also sells reversing mill plate. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EU steps up steel import monitoring after US measures


03/04/25
News
03/04/25

EU steps up steel import monitoring after US measures

Brussels, 3 April (Argus) — The EU has immediately increased its surveillance of steel imports in response to additional tariffs in the US, and global overcapacity. "We want to prevent that the steel that hits [the US] tariff wall doesn't hit us here in Europe," a senior EU official said. "Under the WTO rules, the safeguard agreement, we can close our markets due to an unexpected and sudden influx of imports and where a quick reaction is needed". "We have different tools, safeguards is one of them. How exactly we will be using those tools to deal with this trade diversionist effect, that depends on what happens, that depends on the analysis," he added. Global excess steel capacity is forecast to increase to more than 720mn t by 2027, from 602mn t last year, according to the OECD — this is over five times EU steel production. Retaliatory tariffs in the US on all trade partners risk a trade diversion that could further dampen steel demand downstream as well as upstream. Finished goods diversion a challenge European service centres, distributors and processors have already struggled with an increase in imports of components and finished goods, which has undermined demand from their own customers. European steel, tube and metal distributors association Eurometal has recently been lobbying for downstream import protection. Senior figures from the association were in Brussels today, discussing the issue. "We are spreading the message to the European Commission that we need to protect the steel consumption in Europe, not only production," Tata Steel Layde managing director and former Eurometal president Fernando Espada said on LinkedIn from Brussels. EU trade commissioner Maros Sefcovic will speak on 4 April with US secretary of commerce Howard Lutnick. Officials added that the EU is a partner in finding solutions to problems from an ineffective rules-based system or "global overcapacity that comes from a large non-market economy". By Dafydd ab Iago and Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Oil futures, stock markets fall on Trump tariffs


03/04/25
News
03/04/25

Oil futures, stock markets fall on Trump tariffs

Singapore, 3 April (Argus) — US president Donald Trump's announcement of sweeping new tariffs on all US imports has sparked an immediate sell-off in oil futures and stock markets. Crude oil futures fell by almost 3.5pc in Asian trading and some stock markets in the region fell by a similar amount, after Trump unveiled the new import tariffs on 2 April. All foreign imports into the US will be subject to a minimum 10pc tax, with levels as high as 34pc for China and 20pc for the EU, Trump said. But energy and some mineral products have been excluded from the new tariffs. Tariffs on Japan and South Korea, both major trading partners and long-standing US allies in Asia, have been set at 24pc and 25pc respectively. Indonesia, Vietnam, Taiwan and Thailand also face tariffs of more than 30pc. Tariffs on imports from China will be subject to a 54pc rate, after taking into account the 20pc tariffs imposed by Trump over the last two months. Some imports from China that are subject to pre-existing tariffs will face an even higher effective rate. The blanket 10pc tariffs will take effect on 5 April. Any additional country-specific rates will come into force on 9 April. Oil futures fell despite the exemption for energy products. The June Brent contract on the Ice exchange fell by as much as 3.2pc to a low of $72.52/bl in Asian trading, while May Nymex WTI dropped by 3.4pc to $69.27/bl. The prospect that the US tariffs could disrupt global trade and hit export-focused economies in Asia sent stock markets in Tokyo, Hong Kong and South Korea down by 2-3pc or more. US stock futures also fell sharply. By Kevin Foster Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Mexico manufacturing extends contraction in March


02/04/25
News
02/04/25

Mexico manufacturing extends contraction in March

Mexico City, 2 April (Argus) — Mexico's manufacturing sector contracted for a 12th consecutive month in March, with production and employment both deepening their slides, according to a survey released today. The manufacturing purchasing managers' index (PMI) ticked up to 47.2 in March from 47.1 in February, but remained below the 50-point threshold between contraction and expansion, according to the latest PMI survey from the finance executive association IMEF. Manufacturing, which accounts for about a fifth of Mexico's economy, is led by the auto sector, contributing about 18pc of manufacturing GDP. Within the manufacturing PMI, the new orders index rose by 1.3 points to 45.3, still deep in contraction. Meanwhile, production fell by 0.6 points to 44.6. The employment index also declined 0.6 points to 46.4 in March, now in contraction for 14 consecutive months. Meanwhile, the non-manufacturing PMI — covering services and commerce — declined 0.8 points to 48.8 in March from 49.6 in February, holding in contraction for a fourth consecutive month. Within the non-manufacturing PMI, new orders fell 1.5 points to 48.2 and production declined 1 point to 47.5 with employment down a point as well in March to 47.5, as all three pushed deeper into contraction. In contrast, the inventories component rose 3.5 points to 50.6 into expansion territory in March. But this may be the result of company strategies to stockpile inventories ahead of US tariffs and the reciprocal measures Mexico is set to announce on 3 April, IMEF technical advisory board member Sergio Luna said. PMI data show that the economic stagnation that began in late 2024 persisted through March, with results from January and February pointing to a sharp slowdown in the first quarter, IMEF said. This follows annualized GDP growth of 0.5pc in the fourth quarter of 2024, slowing from 1.7pc in the third quarter, according to national statistics agency data. Luna said concerns over US tariffs continue to drive much of the uncertainty reflected in the PMI data. Internal factors — such as reduced government spending to contain the fiscal deficit and investor unease over judicial reforms passed last year — are also weighing on activity, Luna added. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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