April 11, 2023

News:

• Despite flat prices last month, Chile’s copper export revenue hit $4.585 billion in March, the highest revenue figure since December 2021, according to the Chilean Central Bank.
• Revenue slumped in January and February due to production issues, according to Bloomberg.
• AEGIS notes that Chilean copper miners continue to be plagued with numerous production issues, including operational setbacks, project delays, and drought-related water restrictions. 

Market Commentary:

• LME Copper prices are up about 5.5% so far this year, due in part to the Chilean production issues. If they continue, these production issues could remain bullish for the LME copper market.
• The average LME 3M Copper price last month was $8,868/mt, up over 17% from the lows of last July.
• The LME copper forward curve is relatively flat throughout 2023 but becomes quite backwardated in 2024 and beyond. AEGIS notes the shape of the forward curve has been persistent throughout 2023, and that it could lead to lower production or investment this year or in the coming years.
• If you are concerned about rising copper prices, please contact AEGIS to discuss and implement specific hedging strategies.

Note: Clients with AEGIS Platform access can see this and other research, plus hedge portfolio reporting and tools here. 

Price Indications

Today's Charts

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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.