August 4, 2023

• LME Aluminum 3M Select is down $24.5/mt and is on pace to close nearly unchanged on the week.
  • Last trade was $2,208/mt (6:45 AM CST)
  • Japanese aluminum buyers have agreed to set the country’s import premium at $127.5/mt in Q3, Reuters reported earlier this week. Approximately three weeks ago, one major aluminum importer agreed to a $127.5/mt premium over the LME, so this most recent announcement is in line with expectations. The premium set for Q3 is down slightly from the $130/premium paid the prior quarter. This slight dip in premiums is likely due to continually lackluster end-user demand. Japan is Asia’s largest aluminum importer; therefore, its import premium is considered a key gauge of Asian demand. (Source: Reuters)
• LME Copper 3M Select is down $134/mt and is on pace to close down nearly 2% on the week, potentially coughing up most of last week’s gains.
  • Last trade was $8,505/mt (6:45 AM CST)
  • Recent import data suggests that Chinese imports of copper products show a tale of diverging markets. In 1H2023, the country imported 1.65 million mt of refined copper, down nearly 12% from 2022 and the lowest level of the pandemic era. Imports of copper concentrate (the precursor to refined copper) jumped a record 13.4 million mt in 1H2023, while scrap imports also increased. (Source: Reuters)
• Prompt month CME HRC Steel last settled at $815/st (6:45 AM CST).
  • Nucor, which is one of America’s largest steel producers, has set its flat steel price at $1,570/st for September, the company announced earlier this week. The company has now left its flat steel price unchanged for three consecutive months. Nucor has been reluctant to lower prices, despite the hopes of buyers at service centers. (Source: Argus)

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Price Indications

Today's Charts

AEGIS Insights

08/03/2023: Important US Economic Data (AEGIS Reference)

08/02/2023: AEGIS Factor Matrices: Most important variables affecting metals prices

07/20/2023: Aluminum Prices Could Hinge on Chinese Stimulus

07/11/2023: Copper Prices Could Remain Subdued While African Production Grows

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

8/3/2023: Column: Rio Tinto counts the cost of producing green aluminium

8/2/2023: Factbox: The complexity of transforming rare earths from mine to magnet

8/2/2023: Trafigura seeks extra funds as Congo project costs overrun, Bloomberg reports

8/1/2023: UPDATE 1-Japan buyers agree to pay Q3 aluminium premium of $127.5/T -sources

8/1/2023: Nucor keeps plate pricing flat

8/1/2023: Column: China imports less refined copper but raw materials surge

7/31/2023: Summary of SMM Aluminium Morning Meeting on July 31, 2023

7/28/2023: Chile's Codelco sees lower copper output, more stoppages in 2023

7/28/2023: Toyota's global sales rise 5.1% to 4.9 million in first half of 2023

7/28/2023: Rusal considers restart of aluminium smelter in Nigeria

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