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13 MARCH 2018 AL CIRCLE

AMAG’s operating result for 2018 to be hit by US tariffs on aluminium imports

EDITED BY : BEETHIKA BISWAS 2MINS READ

AMAG, a leading Austrian premium supplier of high-quality aluminium cast and flat rolled products has expressed concern over the imposition of 10% punitive tariff on aluminium imports to USA On March 8, 2018.

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In response to USA’s tariffs on aluminium imports, Helmut Wieser, CEO of AMAG Austria Metall AG said that the USA has been a key market for AMAG primary aluminium and rolled products for many years and US administration’s decision will have an impact on AMAG’s operating result this year which was expected to be a mid-seven-digit euro figure. He however said that the decision would not affect the Canadian part of AMAG production provided the country is exempted as specified.

“The opportunities and risks of the response of the USA’s trading partners and any changes in the flow of goods must be monitored over the medium term,” said Wieser.

The company also noted that USA is a net importer of aluminium. While the country consumed about 5.4 million tons of aluminium in 2017, domestic production stood at 0.7 million tons and the rest 4.7-million-ton shortfall (or 87% of domestic consumption) was compensated through imports.

The USA imported around 1.1 million tons of rolled products (455,000 tons or 40% from China and 164,000 tons or 14% from the EU) in 2017. The country exported 850,000 tons of aluminium rolled products mostly to Canada and Mexico, with around 50,000 tons sent to the EU. The USA was therefore also a net importer of rolled products in 2017 with a deficit of 250,000 tons.

AMAG has invested in the expansion of rolled product capacity at its Ranshofen plant considering the increasing export to the U.S. market. Over 300,000 tons of rolled products were intended to be shipped to the USA. The company was expecting US sales of around 35,000 tons of rolled products in 2018. AMAG also holds a 20% interest in the Canadian smelter Alouette and around 120,000 tons of primary aluminium produced is exported to the USA.  Being a leading exporter to the U.S., the tariffs are expected to have a strong impact on it rolled product sale as well as overall sales. 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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