April 14, 2022

China exported a record quarterly volume of unwrought aluminum and aluminum products, taking advantage of a nearly 25% rally in global prices in Q1 2022. The country exported 1.63 million mt in Q1 2022, up from 1.29 million mt in Q1 2021, according to China customs data. Global aluminum production has dropped; high energy costs have forced several European smelters to shut down, leading to record LME prices, according to Bloomberg. China is the world’s largest aluminum producer; however, normally exports only a small amount of aluminum.

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.

Please note that due to the Good Friday and Easter Monday holidays, the LME will be closed on Friday, April 15 and Monday, April 18. We will not produce a First Look those mornings. Our office will be closed on Friday only. (4/14/2022)

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