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LME Aluminum 3M is down nearly $385/mt, or approximately 10%, (7:15AM CST) this week, despite news that Oleg Deripaska, Rusal’s founder and largest shareholder of its parent company, EN+, was sanctioned by the UK government yesterday. Rusal itself was not sanctioned; however, Western efforts to distance themselves from Russian companies could strain supplies of commodities such as aluminum. Importers are already beginning to source material from other suppliers, according to mining.com. One analyst cited by Bloomberg yesterday stated, “The fact that all these men are ‘under the gun’ makes dealing with their underlying companies all the more problematic.” Rusal is the largest aluminum producer outside of China, with 3.76 million mt of production in 2020 or about 5.7% of world production, according to S&P Global and USGS data. Consumers who are concerned about their aluminum input costs might consider purchasing swaps or call options. Please note that doing so might incur losses if prices decrease. Please contact AEGIS for specific strategies that fit your operations. (3/11/22) |
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Note: Clients with AEGIS Platform access can see this and other research, plus hedge portfolio reporting and tools here. |
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Today's Charts |
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AEGIS Insights |
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03/02/2022: AEGIS Factor Matrices: Most important variables affecting metals prices 02/15/2022: Section 232 Tariffs: Most relevant developments (AEGIS Reference) |
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| Important Headlines | ||
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3/10/2022: Rio Moves To Stop Shipments To Russian-Owned Alumina Plant 3/10/2022: Billionaire Oleg Deripaska, owner of Aughinish Alumina in Limerick, hit with sanctions 3/9/2022: Nickel price spike “purely financial” but Tsingshan effect could linger 3/8/2022: Russian metals industry’s reliance on China set to rise as sanctions disrupt supplies 3/8/2022: Nickel short seller could take $8 billion hit after price soars past $100,000 a tonne 3/8/2022: LME cancels nickel trades after prices double to over $100,000 3/8/2022: VIEW LME suspends nickel trading after price surge 3/7/2022: Chile a step closer to nationalizing copper and lithium 3/7/2022: Oil, wheat, nickel storm higher on fears of supply chaos 3/7/2022: Oil, nickel, commodities prices soar as global shares tumble 3/7/2022: London bullion market bars Russian gold refineries |
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| 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.
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