Base Metals Dashboard - Week Ending December 20, 2024

Metals moved lower this week as the US dollar pushed to a two-year high on Federal Reserve commentary for 2025. Meanwhile, bauxite hit a record high on global supply chain issues, hurting margins for aluminum producers.

Aluminum

Aluminum prices fell to a new monthly low, but recovered towards the end of the week. Prices have been pressured by a strong US dollar. It was reported that global aluminum supply grew by 0.2% in November.

Copper

Copper prices fell to the lowest price since August, with the market still waiting for stronger stimulus measures from China. Weakness in equity markets also contributed.

Other Important LME and CME Metals & Markets

Iron ore fell with the Australian government forecasting lower prices in 2025 and 2026. Australia’s Department of Industry said in a quarterly outlook that they anticipate Iron prices to average $80/ton in 2025 and $76/ton in 2026.

LME Aluminum

LME Aluminum 3M settled at $2,649.50/mt, up $29/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.

Midwest Premium

Prompt month CME MWP last traded/settled at 21.7¢/lb this week.

The CME Midwest Premium market is now in a contango from the November‘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. *

LME Copper

LME Copper 3M settled at $9,002.50/mt, down 441/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.

LME Nickel

LME Nickel 3M settled at $15,540/mt, down $857/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.