|
Due in part to the ongoing Russia-Ukraine conflict, aluminum had its biggest quarterly price gain since 1988. Logistical issues and Western sanctions have hampered Rusal’s ability to source bauxite and alumina. Bauxite is the ore that is refined into alumina, and alumina is then converted into aluminum. Rusal’s alumina plant in southern Ukraine has been shuttered for employee safety concerns. Earlier this month, Australia banned exports of alumina and bauxite to Russia. Likewise, Rusal is currently unable to receive bauxite shipments from their mines in Guinea. Rusal, the largest aluminum producer outside of China, produced 3.76 million mt of aluminum last year, according to their 2021 operating results. |
|
|
|
Consumers who are concerned about their aluminum input costs should consider financial swaps or purchasing call options. Such positions are standard for consumer hedging, but they can result in opportunity costs or cash costs if metal prices decline. Please contact AEGIS for specific strategies that fit your operations. (4/1/22) |
||
|
|
||
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 |
||
|
03/23/2022: AEGIS Factor Matrices: Most important variables affecting metals prices 03/23/2022: Russian Metals Production and Related News: Most Recent Developments (AEGIS Reference) |
||
|
|
||
| Important Headlines | ||
|
3/31/2022: Biden eyes Cold War-era defense law to boost mining sector 3/31/2022: METALS-Aluminium heads for biggest quarterly gain since 1988 3/30/2022: Tesla signed secret nickel supply deal with Vale - Bloomberg News 3/30/2022: Rusal's Guinea bauxite exports grind to a halt amid Ukraine crisis 3/29/2022: Column: European smelter squeeze keeps zinc close to record highs 3/29/2022: CRU-CESCO-LME to hold independent review into nickel crisis 3/29/2022: PRECIOUS-Gold retreats, palladium slides 9% on progress in Ukraine talks 3/29/2022: LME board to evaluate lessons from nickel halt, parent company says 3/28/2022: METALS-Copper, nickel fall on China's COVID curbs, firm U.S. dollar 3/28/2022: Rusal can’t access alumina from Australia JV as pressure builds |
||
|
|
||
|
|
||
| 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.
|
||
