By Abinaya V

DUBAI, March 13 (Reuters) - United Arab Emirates exports

of aluminium to the U.S. jumped in the first 11 days of March,

data from the U.S. Department of Commerce showed, as buyers

stocked up on shipments from their second-biggest supplier

before the U.S. tariffs took effect on Wednesday.

So far in March, the UAE exported 68,560.29 metric tons of

aluminium to the U.S. before the tariffs kicked in, compared to

16,124.88 metric tons in all of March 2024. The exports in March

are already at a nearly two-year high on a monthly basis.

President Donald Trump imposed 25% tariffs on all U.S. steel

and aluminium imports with the goal of strengthening domestic

production.

In 2024, Canada supplied about 70% of primary and alloyed

aluminium consumed by the U.S., while the UAE was the

second-largest exporter with about 8% in total U.S. consumption

last year.

Canada, the biggest foreign supplier of steel and aluminium

to the U.S., has announced 25% retaliatory tariffs on those

metals, along with computers, sports equipment and other

products.

U.S. importers are likely to look for alternative sources

given the trade tensions with Canada and the threat of

increasing tariffs on imports from Canada further, Yulia

Buchneva, director at Fitch Ratings, said.

"On average, the business costs of UAE producers are lower

than for Canadian ones, according to CRU estimates, while

Emirates Global Aluminium is the lowest-cost producer globally,"

Buchneva said, referring to figures from a consultancy. She

added that the UAE would be able to profitably export the metal

to the U.S. even with a tariff.

EGA, one of the world's largest aluminium producers, said on

Wednesday volatility in aluminium prices is expected to continue

in 2025 due to tensions in global trade, adding that alumina

markets are expected to normalize as more capacity is expected

to come online this year.

U.S. users depend on aluminium producers in Canada such as

Alcoa ( AA ) and Rio Tinto and will look for alternative

supply, analysts have said.

Benchmark aluminium prices on the London Metal Exchange

have gained 5% this year to $2,675 per metric ton, but

have retreated from an eight-month peak of $2,736 hit in

February.