Indian Aluminium gained by 7.8% at Rs 140 per kg to end the month of March 2018. On monthly basis, domestic Aluminium prices depleted by 0.51 percent. The data estimates from International Aluminium Institute (IAI) showed that Aluminium production was up to 2.469 million tonnes in February 2018, from 5.55 million tonnes in January 2018. On a yearly basis, Aluminium production declined by 49.87% from 4.926 million tonnes in February 2018.
In a tariff war starting after US introduced tariff on steel and aluminium, China countered with 25% tariff on US Aluminium scrap imports. US President Donald Trump raised duties on foreign steel and aluminium imports in March. The Chinese Government has responded to the imposition of US tariffs on steel and aluminium imports, by also implementing a 25% tariff on imports of aluminium scrap from the US.
From 2 April, all imports of US aluminium scrap will be subject to the tariff. Chinese Ministry of Finance said that the introduction of tariffs was a response to the US deciding to implement its own tariffs against World Trade Organisation rules. The move is likely to increase demand for aluminium scrap from UK and European sources if the material remains cheaper than US sources.