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LME Copper 3M Select is down $89/mt, or approximately 1%, (7:10AM CST) this week, despite civil strife that has affected nearly 20% of Peru’s mine output. The Las Bambas mine, which produced 300,000 mt in 2021, halted production on Wednesday after protesters entered the site. Also on Wednesday, Peru’s prime minister, declared a state of emergency near the 170,000 mt/year Cuajone mine that closed in February when protestors stopped the mine’s water supply. This state of emergency aims to end the protests by terminating the protestors’ civil liberties, according to Reuters. In both instances, the protestors are demanding compensation for mine usage. At 2.2 million mt, Peru was the world’s second largest copper miner in 2021, according to USGS data. |
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Consumers who are concerned about their copper 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. (4/22/2022) |
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AEGIS Insights |
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04/20/2022: AEGIS Factor Matrices: Most important variables affecting metals prices 04/05/2022: Russian Metals Production and Related News: Most Recent Developments (AEGIS Reference) |
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| Important Headlines | ||
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4/21/2022: METALS-Copper rebounds after miners report sliding production 4/20/2022: Peru declares state of emergency to restore copper production at Cuajone mine 4/20/2022: RPT-COLUMN-China steel market walks high wire between cutting output, boosting growth: Russell 4/20/2022: China's March alumina exports to Russia soar as sanctions over Ukraine bite 4/19/2022: Yunnan Tin halts production amid new COVID-19 outbreak 4/18/2022: China March crude steel output slips 6.4% on year, hurt by COVID outbreak 4/18/2022: China March aluminium imports down 4.6% year over year amid high overseas prices 4/18/2022: MMG's Las Bambas copper mine in Peru to suspend operations after protest |
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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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