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**AEGIS is attending the SMU Steel Summit Conference 2022 at the Georgia International Conference Center in College Park on August 22 – 24. If you would like to schedule a meeting during the summit, please contact Patrick McCrann at pmccrann@aegis-hedging.com or (713) 936-2806. ** |
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Steel mill maintenance season, which runs from September through November, will remove an estimated 600,000 st total, or 6,450st/day, from flat-rolled production according to Argus. However, sources polled by Argus believe that this will do little to change the supply picture, especially since an additional 18,700 st/day in new production capacity will be brought online in 2H. Argus also notes that the oversupply issues have been caused by weak consumer demand and a lack of buying interest by service centers. Due to falling demand and oversupply, prompt month August CME HRC futures have dropped over 52% since the highs of March, with last settle at $787/st (7:00 AM CST). HRC Steel end-users might utilize the recent price drop by applying hedges that provide upside price protection, such as buying swaps or call options, both of which would establish a maximum price. Such positions are standard for end-user hedging; however, they can result in opportunity costs or cash costs if metal prices decrease. Please contact AEGIS for specific strategies that fit your operations. (8/22/2022) |
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Note: Clients with AEGIS Platform access can see this and other research, plus hedge portfolio reporting and tools here. |
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Price Indications |
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Today's Charts |
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AEGIS Insights |
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8/17/2022: AEGIS Factor Matrices: Most important variables affecting metals prices 8/16/2022: Zinc Prices Are On The Rebound Due To Supply Issues 8/9/2022: Aluminum prices are finding support: Consumers can lock in lower costs in 2023 and beyond 8/2/2022: Russia Finds New Alumina Supply |
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| Important Headlines | ||
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8/18/2022: China's power shortages disrupt nonferrous operations 8/17/2022: US steel mill outages unlikely to shift market 8/17/2022: Slovalco will stop primary aluminium production 8/16/2022: Nyrstar to put Budel zinc operations on care and maintenance on Sept 1 8/16/2022: China's Tsingshan considers selling Indonesian assets to Baowu 8/15/2022: Green steel still decades away: BlueScope 8/15/2022: Commodity Tracker: 4 charts to watch this week 8/12/2022: Sky-high energy costs to fan fire under aluminium and zinc prices |
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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. 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.
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