Norwegian aluminium producer Norsk Hydro posted a smaller than expected rise in quarterly earnings on Friday, as higher costs and weak downstream demand offset gains from strong alumina and aluminium prices.
Its adjusted earnings before interest, taxes, depreciation and amortisation more than doubled to 7.70 billion Norwegian crowns ($690.5 million) in the final quarter of 2024, but missed analysts’ consensus of 8.28 billion crowns.
U.S. President Donald Trump’s 25% tariffs on steel and aluminium are inflating U.S. prices and exposing the gap in domestic production, creating a potential cost surge for aluminium producers like Hydro who rely on imports to meet U.S. demand.
“As the U.S. is a major aluminium importer, tariffs will likely raise premiums and costs, with Midwest premiums already surging to the highest levels since April 2023,” Hydro said in the statement.
The U.S. aluminium premium over the global benchmark on the London Metal Exchange (LME) has shot up by a quarter since last Friday to 35 cents per pound. It has surged by 60% since Trump was elected.
Hydro said it continues to take and evaluate mitigation actions for exposed trade flows across the U.S. border.
The company said tariffs minimally impacted its extrusions business because it primarily uses domestic raw materials and passes higher LME prices and premiums to customers.
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Source : globalbankingandfinance
