The US tariff spiral keeps turning for Aluminum and Steel - Commerzbank

US President Trump's announcement last Friday that US tariffs on Steel and Aluminum imports would be increased from 25% to 50% -- with the higher tariffs being said to take effect tomorrow -- initially caused further uncertainty on the base metal markets, with prices in the US rising sharply, Commerzbank's commodity analyst Barbara Lambrecht notes.

Mood between the US and China has deteriorates again

"The premium payable in the US for Aluminum jumped by 45% and yesterday reached a new high of $1,240 per ton. The price of Copper on the COMEX also rose significantly, as the increase in tariffs on Aluminum and Steel fueled concerns about future tariffs on Copper."

"Elsewhere, however, prices initially came under pressure. After all, these ad hoc measures are reigniting fears of an escalation of the tariff conflict, especially as the mood between the US and China has deteriorated again in other areas and the EU has been quick to threaten counter-tariffs."