Aluminum stocks got a nice bump this week. This, after President Trump ordered 25% tariffs on the high-demand metal.
Of course, we’ve been bullish on aluminum stocks even before Trump rattled his sabre. And for good reason.
Truth is, aluminum demand has been on the path to record growth for some time now. Mostly as a result of increased demand for electricity due to crypto mining and AI data centers. As you likely know, aluminum is integral to the transmission and distribution of electricity.
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Massive amounts of aluminum are also necessary for a number of products that are in high demand. These include, but are not limited to:
- Solar panels
- Electric Vehicles
- Construction
The latest data indicate that demand for aluminum will increase by 81% by 2050. That’s not trivial. And some have suggested it will be more. But we’ll stick with the more conservative estimate.
Now there are the obvious plays here:
- Alcoa (NYSE: AA)
- Century Aluminum (NASDAQ: CENX)
- Kaiser Aluminum (NASDAQ: KALU)
- Tredegar Corporation (NYSE: TG)
- Norsk Hydro (OTCBB: NHYDY)
But aluminum recycling companies are starting to look good now, too.
Recycling Aluminum Stocks
Aluminum recycling companies that offer mill-ready shred and other recycled metals are in an excellent position to capitalize on these 25% tariffs.
Indeed, in times of steady demand, tight margins for aluminum recyclers can make it difficult to eke out a profit. But with the dual threats of soaring demand and 25% tariffs, U.S. aluminum recyclers suddenly look quite appetizing.
Just five years ago, the price of aluminum clocked in at around $1,700 per metric ton. But according to Skilling, the Seychelles-based fintech trading firm, we could see it get as high as $4,000 per metric ton by 2030.
At $4,000 per metric ton, some of these smaller aluminum recyclers suddenly become legitimate players. Radius Recycling (NASDAQ: RDUS) and Greenwave Technology Solutions (NASDAQ: GWAV) are two aluminum recycling stocks to keep on your radar. Particularly if this tariff war heats up.
Of course, there’s more than one way to profit from a tariff war. In fact, our research team here at Energy & Capital just put together a new investor report that highlights 6 stocks that are primed for a major run as these new tariffs take hold.
Whether you like tariffs or not, there’s an opportunity here for you to make a lot of money. So you might as well make it.
To a new way of life and a new generation of wealth…
Jeff Siegel
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Jeff is an editor of Energy and Capital as well as a contributing analyst for New World Assets.
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