|
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.
|
|
|
|
Global steel prices are expected to remain high, yet lower than 2021 levels, according to Moody’s Investor Services. In its most recent mining and metals outlook, released on Monday, Moody’s stated that steel consumption in China has dropped due to COVID lockdowns, and the country’s rising inflation has weighed on sentiment. Going forward, the research firm stated that supply-chain issues are reducing global demand, and panic buying of steel is decreasing. As for raw material costs, iron ore prices could drop as Brazil increases its output; however, Chinese steel production and demand could hold a larger sway. American steel prices escalated in 2021 and remain high in 2022. After rallying to $1,665/T in March, the prompt month (June) CME HRC Steel futures now hover near $1,150/T and are barely higher for the year. End users might consider using the recent dip in prices by applying simple hedges involving swaps and call options. These could cap your steel costs, guarding against a price recovery. 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. (6/8/2022) |
||
|
|
||
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 |
||
|
06/1/2022: 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 | ||
|
6/6/2022: Stronger China demand prospects propel copper to five-week peak 6/3/2022: Peru Cabinet meeting ends with no word on Las Bambas mine crisis 6/2/2022: Copper price scales $10,000 on Chinese stimulus, lockdown reprieve 6/1/2022: UPDATE 1-Global aluminium producers seek Q3 premiums of $172-$177/T in Japan talks - sources
|
||
|
|
||
|
|
||
|
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.
|
||
