|
The current pricing environment will delay copper mine expansions, further exacerbating the currently “tight” physical market, Freeport McMoran stated in its 3Q earnings call. Freeport believes that the recent drop in copper prices is largely due to a strong US dollar, the European energy crisis, a slowing economy in China, and weak investor sentiment. However, Freeport exclaims that customer demand is strong, and long-term conditions appear favorable due to the “energy transition.” In the first nine months of 2022, the company sold 3.171 billion lbs of copper, up from 2.787 billion lbs in the same period last year. |
|
|
|
Prices could rally if Freeport’s predictions about copper supply and demand are accurate. The LME Copper 3M Select last traded at $7,576.00/mt (7:00 AM CST), down almost $2,200/mt from the June 7 high of $9,805.50/mt. This recent dip in prices could be a good opportunity for end-users to hedge future needs into 2023 and beyond by buying swaps. 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. (10/24/2022) |
||
|
|
||
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 |
||
|
10/19/2022: 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 |
||
|
|
||
| Important Headlines | ||
|
10/21/2022: India's JSW Steel posts surprise quarterly loss on price slump 10/19/2022: EXCLUSIVE Glencore delivers Russian-origin aluminium into LME system -sources 10/19/2022: LME copper stocks plunge again as metal heads to China 10/19/2022: Global steel demand to drop 2.3pc this year 10/17/2022: Aluminium price drops on jump in LME stocks and Russian metal 10/16/2022: Codelco offers 2023 European copper premiums at record high -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.
|
||
