RBC Capital: U.S. - EU Metals Alliance Could Benefit Norsk Hydro

SEATTLE (Scrap Monster): RBC Capital analysts noted that Norsk Hydro, a major international aluminum and renewable energy corporation with its headquarters in Oslo, Norway, may benefit from a possible metals alliance between the United States and the European Union.

What the alliance proposes?

Trump's 50% import tariffs would be replaced by a quota system with little to no duties for European Union steel and aluminum producers under the broad-based trade agreement. However, the new system's specifics have not yet been decided.

How is it going to benefit Norsk Hydro?

Even though the firm makes the majority of its aluminum in Norway, which is outside of the EU, RBC analysts pointed out that the possible partnership may give Norsk Hydro a significant boost. If the two sides agree to expand the agreement to cover Norway and the rest of the European Economic Area, the corporation would greatly benefit. It must be noted that around six-tenth of Norsk Hydro’s primary aluminum production is estimated to be from Norway.

Scrap shortage across EU

Scrap metal shipments from Europe to the United States have significantly increased as a result of the Trump administration's imposition of high tariffs on steel and aluminum. As a result, there has been a scarcity of scrap materials throughout the EU.

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