March 17, 2022

LME Copper 3M Select rallied by $241.50/mt, or 2.4%, closing at $10,133.50/mt yesterday after China stated the government will enact new monetary policies to stimulate economic growth. These measures include new loan growth and easing regulations on real estate and technology firms, according to Bloomberg. China is a large consumer of base metals such as copper, and market participants consider base metals demand to be a gauge of their economic activity.

Consumers who are concerned about their copper 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. (3/17/22)

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AEGIS Insights

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3/15/2022: China's Tsingshan enters deal with bankers to resolve nickel trade position

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3/14/2022: UPDATE 1-China's Tsingshan agrees standstill agreement on LME nickel margins with banks

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3/12/2022: UPDATE 1-Russia's Nornickel has new routes for palladium supplies -Potanin tells RBC