Aluminium markets endured a turbulent first half of 2025, with ingot prices slumping sharply in the second quarter across North America, Asia-Pacific, and Europe. Oversupply, sluggish downstream demand, and rising inventories all weighed heavily, while US tariff policy further unsettled trade flows.
The pressure intensified in July as Washington doubled tariffs on aluminium imports to 50 per cent, a move that disrupted supply chains and reshaped price dynamics.
North America: tariffs, stockpiling, and demand weakness
In North America, the Aluminium Ingot Price Index fell nearly 18 per cent in the second quarter compared with the first, reflecting the combined impact of oversupply and weaker demand. Importers had accelerated stockpiling ahead of the Section 232 tariff hike in June, leaving inventories both in domestic markets and in LME warehouses.
Midway through the quarter, producers benefited from temporarily lower alumina and energy costs, but by late June sharply higher tariffs drove import costs upward, compressing smelter margins.
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