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The White House is considering banning all Russian metal imports, hiking tariffs, or sanctioning Rusal, according to anonymous sources cited by Bloomberg and Reuters. AEGIS notes this could be supportive of aluminum prices, as nearly 10% of our aluminum imports come from Russia. These possible actions stem from Russia’s ongoing conflict with Ukraine. The Biden administration has yet to make a formal announcement on the matter. |
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Aluminum prices jumped over 4% after this news broke. The market has held strong and is up approximately 1% since yesterday’s close, with last trade at $2,366/mt (7:00 AM CST). Aluminum prices could remain supportive if the White House follows through on any of the plans outlined above. This is mainly because US aluminum importers will need to seek out new suppliers if Russian supplies are cut off. Aluminum end-users that are concerned about increasing prices could consider buying swaps or call options, as either would establish a maximum aluminum price. Such positions are standard for consumer 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. (10/13/2022) |
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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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10/05/2022: AEGIS Factor Matrices: Most important variables affecting metals prices 10/05/2022: European Aluminum Smelters Might Have Negative Margins Through 2023 8/31/2022: Will Chilean Production Issues Drive Copper Prices Higher? 8/24/2022: Chinese Aluminum Supply Issues Could Rally Prices |
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| Important Headlines | ||
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10/12/2022: U.S. may block Russian aluminum imports -source 10/11/2022: Column: Supply hits catch up with lead as LME stocks shrink 10/10/2022: How a ban on Russia’s mining giants could shake the metals world 10/8/2022: Alcoa Inks 131 MW Wind Power Agreement For 2024 Restart Of San Ciprián Aluminium Smelter 10/7/2022: ISRI opposes Mexico Fe, Al scrap export ban |
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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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