Base Metals Dashboard - Week Ending November 22, 2024

Base metals fell this week despite bullish news from China. Earlier in the week aluminum and copper prices were supported by the cancellation of a tax rebate in China which had supported exports in recent years.

Aluminum

Aluminum prices were supported earlier this week by the cancelation of China's aluminum export tax rebate. It has been reported that Chinese firms are now going to be front loading exports before the new policy takes effect. Despite this prices finished the week lower. (Bloomberg)

Copper

There may be a supply gap in copper coming, with the rate of approved copper projects potentially falling short of what is needed. Project approvals in Latin America have been slower-than-average, although that has been partially offset by approvals in Central Africa. (Bloomberg)

Other Important LME and CME Metals & Markets

Iron ore is heading for the largest weekly gain since October, supported by signs of a rebound in Chinese steel output and speculation that more stimulus could be coming. (Bloomberg)

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.