July 10, 2023

• LME Aluminum 3M Select is up $2.5/mt, hovering near unchanged.
  • Last trade was $2,143.5/mt (6:45 AM CST)
  • To help ensure the continent’s aluminum production, late last week the EU added aluminum to its list of critical minerals and metals as outlined in Critical Raw Materials Act. According to Reuters, this “Act is the centerpiece of the EU's strategy for ensuring it has the necessary inputs to compete with the United States and China in the global race to decarbonize.” Reuters later added, “Getting aluminum onto Europe's critical raw materials list is an important win for the region's aluminum sector.”
  • As this Act aims to reduce dependence on foreign imports, the EU’s aluminum could rise in the coming decade. Between 2016 and 2020, the EU relied upon imports for 56% of the continent’s demand. As outlined in the Act, this will be achieved by subsidies and tax incentives. (Source: Reuters, EU)
• LME Copper 3M Select is down $71.5/mt, starting the week on a down note.
  • Last trade was $8,295/mt (6:45 AM CST)
  • Copper prices continue to struggle while the calls for more Chinese economic stimulus grow louder. Last Thursday, Premier Li Qiang proclaimed that Chinese authorities will “spare no time” in implementing new stimulus measures. Market participants remain skeptical, mainly because authorities have made similar statements in recent weeks while being vague on details. (Source: Bloomberg)
• Prompt month CME HRC Steel last settled at $905/st (6:45 AM CST).
  • The US automotive industry’s steel demand shows no signs of slowing. Last month, sales of light trucks and cars rose to a seasonally adjusted annual average of 15.7 million units, up from the 15.1-million-unit pace in May. Meanwhile, automotive production in May was 154,000 units, up from 143,700 units in May 2022. (Source: Argus)

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Price Indications

Today's Charts

AEGIS Insights

07/05/2023: AEGIS Factor Matrices: Most important variables affecting metals prices

06/22/2023: Chinese Metals Imports Could Be the Canary in the Coal Mine for Demand

05/17/2023: Cobalt End-Users Should Hedge While Market Is Oversupplied

05/3/2023: Copper Producers Can benefit From Hedging Both Inputs and Production

7/6/2023: US light vehicle sales rose to 15.7mn pace in June

7/6/2023: Column: Europe adds aluminium to its critical raw materials list

7/5/2023: US HRC: Prices edge up on offers

7/5/2023: Ivanhoe Mines reports record quarterly production of 103,786 tonnes from Kamoa-Kakula Copper Complex for Q2 2023

7/5/2023: India’s steel exports drop to six-month low in June

7/5/2023: Zambia says deal with India's Vedanta over disputed copper assets imminent

7/5/2023: India's April-May finished steel imports from China at six-year high

6/30/2023: Zambia's Mopani Copper Mines losses deepen amid search for new investor

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