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Western efforts to distance themselves from Russian metals supplies might keep aluminum premiums elevated. Importers are beginning to source material from other suppliers, according to mining.com. The US is a net importer of aluminum, according to USGS data. 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. |
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The US represented nearly 7% of Rusal’s revenue in 2020, according to their annual report. The prompt month March ’22 CME Aluminum Midwest Premium (MWP) last settled at 39.161¢ and prices remain near contract highs. The CME Midwest Premium, which is a premium that midwestern US buyers pay on top of the LME price, could remain elevated if global supplies continue to tighten. The CME MWP market is extremely thin, with no options market. Hedging in this market is tricky, so we recommend using strategically placed limit orders. Please contact AEGIS for specific strategies that fit your operations. (3/22/22)
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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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AEGIS Insights |
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03/16/2022: AEGIS Factor Matrices: Most important variables affecting metals prices 03/16/2022: Russian Metals Production and Related News: Most Recent Developments (AEGIS Reference) |
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3/20/2022: Australia bans alumina exports to Russia, sources coal for Ukraine 3/18/2022: LME’s copper industry group recommends banning Russian metal |
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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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