Alcoa's 15min chart indicates Bollinger Bands narrowing, KDJ death cross.

Alcoa's 15-minute chart has recently exhibited a narrowing of Bollinger Bands, indicating a decrease in the magnitude of stock price fluctuations. Furthermore, the KDJ Death Cross, which occurred on August 25th at 11:30, suggests a shift in momentum towards the downside, with a potential for further downward movement.

President Donald Trump’s tariffs on metals and mining imports have significantly impacted the financial performance of companies in the sector. Executives from various companies, including steel, aluminum, and copper producers, have reported substantial costs and operational changes due to these tariffs. According to earnings calls, metals and mining companies are navigating varying country-specific rates and commodity-specific tariffs, which have led to fluctuating costs and strategic shifts in sourcing materials.

Steel producers, such as Nucor and Cleveland-Cliffs, have seen mixed results. While they support the tariffs for boosting domestic manufacturing, they have struggled with operational challenges. Nucor's net income dropped by 6.6% year over year, and Cleveland-Cliffs swung to a $470 million loss. Despite these struggles, they remain confident in their ability to adapt and expect to see improved profitability in the second half of 2025.

Aluminum producers, like Alcoa and Rio Tinto, have incurred millions in tariff costs. Alcoa reported $115 million in Q2 tariff costs, while Rio Tinto faced $321 million in gross costs. These costs have led to strategic shifts, such as Alcoa redirecting Canadian production away from US customers to avoid tariffs [1].

Copper producers, including Freeport, have also been affected. Freeport estimated that tariffs will have a 5% impact on costs. Caterpillar, which produces mining equipment, reported tariff impacts of $250 million to $350 million in Q2, leading to a 22% drop in adjusted operating profit compared to the year prior [1].

The tariffs have not only increased operational costs but have also prompted companies to review their operational decisions. Teck Resources Limited, for example, increased capital requirements for a mine extension due to potential tariffs on construction materials [1].

In conclusion, the tariffs have created significant challenges for metals and mining companies. While some sectors, like steel, may benefit from increased domestic demand, others, such as aluminum and copper producers, face substantial costs and operational shifts. Companies are actively adapting to these changes, but the long-term impact remains uncertain.

References:
[1] https://www.hellenicshippingnews.com/metals-and-mining-companies-face-millions-in-tariff-costs-executives-say/