April 23 (Reuters) - The U.S. aluminum industry is
facing real challenges due to the war in the Middle East, trade
tariffs and high prices, but is showing resilience and ability
to adapt, officials from the Aluminum Association said on
Thursday.
"We are hearing from our members that their supply chains
are adjusting in real time," Chuck Johnson, president of the
association that represents U.S. aluminum production and jobs,
said on a call with reporters. The impact on supply chains could
be "more profound" as the conflict drags on, he added.
* The Gulf accounted for around 22% of U.S. primary and
alloyed aluminum imports in 2025, but two of the region's
smelters have been targeted by Iran and others have been unable
to ship metal via their usual channels due to the closure of the
Strait of Hormuz.
* "There is metal coming in from other smelters and other
countries," said Kelly Thomas, the association's vice chair,
without providing specifics. "The good news is that it is a
global industry and there is material available. It's just a
matter of getting it to the United States."
* Domestic aluminum recycling capacity that the U.S. has
invested in is starting to come online, which will be able to
replace some imported metal, said Duncan Pitchford, president of
Norsk Hydro's ( NHYKF ) U.S. unit.
* U.S. aluminum demand in 2025 was flat on 2024, according
to the association's preliminary numbers, Johnson said. "We ...
presume that there may be some demand destruction from direct
tariff effects, but also from the uncertainty in the market. But
we have not confirmed that to date," he added.
* The Trump administration last year imposed a 50% tariff on
imports of aluminum into the U.S., and this month made some
adjustments. "This closed a critical loophole that previously
allowed unfairly traded aluminum to enter the U.S. market
through the downstream goods," Johnson said.