|
AEGIS is attending the Harbor Aluminum Summit at the Radisson Blu Aqua Hotel in Chicago on June 7 – 9. If you would like to schedule a meeting during the summit, please contact Patrick McCrann at pmccrann@aegis-hedging.com or (713) 936-2806.
|
|
|
|
Aluminum had year-over-year demand growth in the US and Canada during 1Q2022, according to The Aluminum Association’s monthly Aluminum Situation report. Total 1Q2022 North American aluminum demand (shipments by domestic producers plus imports) reached 7.0 million mt, up from 6.6 million in 1Q2021. The association estimates that in 2021 North American demand reached 26.3 million mt, an 8.2% increase over the 2020 demand of 24.4 million mt. “The picture for the U.S. aluminum industry remains very strong,” President & CEO of the Aluminum Association Charles Johnson proclaimed. Global aluminum prices dropped in 1Q; however, the CME Aluminum Midwest Premium (MWP), remained strong while North American demand was on the rise. The CME Midwest Premium is a premium that midwestern US buyers pay on top of the LME price. The prompt month MWP (May) was up almost 20% last quarter but is down about 4% in 2Q. May CME MWP last settled at 37.25 cents and is going into expiry. This premium has its own traded market, so the MWP can be hedged. Aluminum end-users such as beverage producers could consider hedging the CME Midwest Premium via swaps. The CME Midwest Premium swap market is thinly traded, and there is 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. (5/31/2022) |
||
|
|
||
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 |
||
|
05/25/2022: AEGIS Factor Matrices: Most important variables affecting metals prices 05/23/2022: India's Steel Exports Tariffs Shock Producers 05/11/2022: China's Metals Exports are on the Rise |
||
|
|
||
| Important Headlines | ||
|
5/30/2022: JSW Steel to maintain shipments to Europe without passing on cost of India's new export tax |
||
|
|
||
|
|
||
|
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. Certain information in this presentation may constitute forward-looking statements, which can be identified by the use of forward-looking terminology such as “edge,” “advantage,” “opportunity,” “believe” or other variations thereon or comparable terminology. Such statements are not guarantees of future performance or activities.
|
||
