May 1, 2024

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• LME Aluminum 3M Select is down $5.5/mt, trending sideways.
  • Last trade was $2,576/mt (6:45 AM CST)
  • Indonesia’s Shandong Nanshan Aluminum Company plans to more than double its alumina production capacity to 4.5 million mt/year, up from 2 million mt/year. The company cites rising demand and ample local bauxite supplies for the expansion. They are building a 250,000 mt/year capacity aluminum smelter. The alumina plant is expected to cost $870 million and is pending approval from local authorities. (Source: Bloomberg)
• LME Copper 3M Select is down $71.5/mt, adding to yesterday’s pullback.
  • Last trade was $9,905/mt (6:45 AM CST)
  • Chinese copper demand is now back into focus as global prices hover near $10,000/mt. Factory activity in China expanded for a second straight month, beating analyst expectations. However, fabricators are still struggling to pass along higher costs to end-users, which is suppressing demand. This could potentially cap global prices. (Source: Bloomberg)
• Prompt month CME HRC Steel last settled at $813/st (6:45 AM CST).
• To diversify its economy, Saudi Arabia aims to become an EV battery production hub. This would be done by securing lithium from foreign sources, as the country currently produces only a small amount of lithium. This is potentially bullish for both lithium demand and prices. If you are an end-user of battery metals such as cobalt or lithium hydroxide, please get in touch with AEGIS for strategies. (Source: Reuters)

Price Indications

Today's Charts

AEGIS Insights

4/25/2024: Mexico's New Tariffs on Steel and Aluminum Imports Create Uncertainty in US Markets

4/24/2024: AEGIS Factor Matrices: Most important variables affecting metals prices

4/3/2024: Important US Economic Data (AEGIS Reference)

3/20/2024: Midwest Premium Buyers Should Hedge While Prices Hover at 3-Year Lows, and Demand Appears To Be Stabilizing

2/27/2024: Aluminum Consumers Should Still Implement Hedges, Even Though Russia Sanctions Mean Little

2/2/2024: China's Real Estate Woes Provide Opportunity for Copper Consumers

1/25/2024: Aluminum Starts 2024 On a Down Note, But Potential Supply Shocks Give Consumers a Reason to Hedge

4/30/2024: Anglo to meet top shareholders on BHP bid as takeover rules restrain AGM

4/28/2024: Saudi Arabia set on securing lithium for EV ambitions

4/27/2024: BHP considering improved proposal for Anglo American after bid rejected, source says

4/26/2024: Beer can maker Ball Corp lags sales estimates on slowing demand | Reuters

Important Disclosure: Indicative prices are provided for information purposes only, and do not represent a commitment from AEGIS Hedging Solutions LLC ("Aegis") to assist any client to transact at those prices, or at any price, in the future. Aegis makes no guarantee to the accuracy or completeness of such information. Aegis and/or its trading principals do not offer a trading program to clients, nor do they propose guiding or directing a commodity interest account for any client based on any such trading program. Certain information in this presentation may constitute forward-looking statements, which can be identified by the use of forward-looking terminology such as “edge,” “advantage,” “opportunity,” “believe” or other variations thereon or comparable terminology. Such statements are not guarantees of future performance or activities.