Analysis-Canada turns from US to Europe as Iran war propels aluminium higher

AI Summary

Canada is redirecting more of its aluminium exports to Europe following higher European premiums after the US imposed a 50% tariff. The Iran war has reduced Middle East supply, intensifying competition and driving prices to extreme levels focused on policy impacts and supply location.

By Pratima Desai and Polina Devitt LONDON, May 27 (Reuters) - Canada is pushing more of its aluminium towards Europe to make the most of higher premiums on offer, after its neighbour the United States imposed a 50% tariff on the metal last year. A loss of Middle East volumes due to the Iran war has hit Europe hardest and intensified competition with the U.S. for low-carbon supply, driving prices to extreme levels, with policy and prices determining where scarce aluminium is shipped, analysts, traders and aluminium industry sources said.