|
The LME Aluminum 3M contract last traded at $3,264/mt, up approximately $65/mt this week, or 2%. Aluminum consumers continue to watch the Russia-Ukraine situation with great interest, as Russia is the world’s second-largest aluminum producer. Sanctions on Russia or Rusal (the state-owned aluminum producer) could impact supply and prices. The CME Midwest Premium (MWP) could be vulnerable, as Russia is the fourth-largest supplier of primary aluminum to the US. In 2020, the US imported 133,000 mt of primary aluminum from them. The US represented nearly 7% of Rusal’s revenue in 2020, according to their annual report. Similar to the CME MWP, European aluminum premiums could be impacted by sanctions. Europe imports nearly 9% of their aluminum tubes and pipes from Russia, according to trendeconomy.com. Likewise, Europe represented nearly 41% of Rusal’s revenue in 2020, according to their annual report. Rusal does not give regional volume breakdowns in their annual report, only revenue by region. Please note that our offices will be closed on Monday, February 21 due to President’s Day. We will not produce a First Look that morning. However, the trading desk will provide LME coverage, current clients can contact metals@aegis-hedging.com for indications. (2/18/2022)
|
|
|
Note: Clients with AEGIS Platform access can see this and other research, plus hedge portfolio reporting and tools here. |
||
|
|
||
Price Indications |
||
|
|
||
|
|
||
Today's Charts |
||
 |
 |
|
 |
 |
|
AEGIS Insights |
||
|
02/16/2022: AEGIS Factor Matrices: Most important variables affecting metals prices 02/15/2022: Section 232 Tariffs: Most relevant developments (AEGIS Reference) 11/30/2021: Will the Omicron COVID Variant Impact South African Metals Production or Exports? |
||
|
|
||
Important Headlines & Economic Data |
||
|
AISI Steel Capability Utilization Rate Investing.com Economic Calendar 2/16/2022: Aluminum price nears 13-year high on tight supply 2/16/2022: News Brief: NT Government blocks MacArthur River mine expansion 2/15/2022: Russia says it pulls back some of its troops, Ukraine and West want proof 2/14/2022: Steel prices hit lowest level in a year 2/14/2022: A vital US-Canadian border crossing reopens after trucker blockade of Ambassador Bridge is cleared 2/10/2022: Indonesia suspends operations of more than 1,000 miners |
||
|
|
||
|
|
||
| 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.
|
||
