Aluminum China's alumina prices surged further, rising by RMB 51 per tonne to reach RMB 4,607 (USD 647) per tonne on October 18. The trend reflects ongoing supply disruptions, particularly from Guinea, where bauxite exports have been halted due to customs blockades. Prices increased across various provinces, including Shandong, Henan, and Guangxi, with gains of up to RMB 75 per tonne. Despite these challenges, aluminum smelters in Yunnan province are expected to maintain production due to robust hydropower supply. Meanwhile, China's alumina exports to Russia have surged 41% year-on-year, marking a shift from being a net importer to a net exporter. Speculation has also arisen around Guinea potentially following Indonesia's path of restricting raw material exports, especially after agreements to build a new alumina refinery were signed. (AlCircle) |
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Copper
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Other Important LME and CME Metals & Markets |
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LME Aluminum |
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LME Aluminum 3M settled at $2,612/mt, down $20.50/mt on the week. Aluminum prices were down this week. The futures forward curve remains in a contango, meaning nearby prices are lower than forward prices. Aluminum consumers concerned about increasing prices might consider hedging future needs by buying swaps or call options. Depending on risk tolerance, end-users might consider strategies that use only swaps or options or a combination of both. The aluminum market has sufficient liquidity to use swaps and options. Please get in touch with AEGIS for specific strategies that fit your operations. |
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Midwest Premium |
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Prompt month CME MWP last traded/settled at 18.4¢/lb this week. The CME Midwest Premium market is now in a contango from the October‘24 contract on forward. The CME Midwest Premium swap market is thinly traded, with no options market. Hedging in this thinly traded market is challenging, so we recommend using limit orders. Please get in touch with AEGIS for specific strategies that fit your operations. * Please note all these charts are for desktop only. * |
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LME Copper |
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LME Copper 3M settled at $9,625/mt, down $166/mt on the week. Compared to last Friday, LME Copper's forward curve has shifted vertically lower and is in contango throughout 2024 and early 2025. The copper market has sufficient liquidity to use swaps and options. Depending on their risk tolerance, consumers might consider strategies that use only swaps, options, or a combination of both. Please get in touch with AEGIS for specific strategies that fit your operations.
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LME Nickel 3M settled at $16,897/mt, down $967/mt on the week. As prices were down this week, nickel’s forward curve also modestly shifted lower. It remains in a steep contango, meaning that nearby prices are lower than futures prices. The nickel market has sufficient liquidity to use swaps and options. Depending upon your risk tolerance, consumers might consider strategies that use only swaps or options or a combination of both. Please get in touch with AEGIS for specific strategies that fit your operations. |
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CME Hot Rolled Coil (HRC) Steel |
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Prompt month HRC Steel last traded/settled at $705/T, down $70/t on the week.
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AEGIS Insights |
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9/16/2024: AEGIS Factor Matrices: Most important variables affecting metals prices 4/25/2024: Mexico's New Tariffs on Steel and Aluminum Imports Create Uncertainty in U.S. Markets 2/27/2024: Aluminum Consumers Should Still Implement Hedges, Even Though Russia Sanctions Mean Little |
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Notable News |
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5/29/2024: Anglo rejects BHP's last-ditch attempt to continue takeover talks 5/27/2024: India's NALCO tops Q4 profit estimates on lower input costs 5/24/2024: India's Hindalco beats Q4 profit view as lower costs outpace weak aluminium prices |