August 21, 2023

• LME Aluminum 3M Select is down $19.5/mt, falling about 1% as of this writing.
  • Last trade was $2,119/mt (6:45 AM CST)
  • On Friday, the LME’s on-warrant aluminum stocks, meaning the metal is available to trade, fell to 199,425 mt, down 75,600 mt from Thursday. Nearly all this drawdown stems from cancellations in South Korean warehouses, which are a known repository of Russian-produced aluminum. Reuters and Bloomberg late reported that Citigroup was behind these South Korean cancellations, grabbing up $160 million, or approximately 75,000 mt, of Russian aluminum.  (Sources: LME, Reuters, Bloomberg)
• LME Copper 3M Select is down $3.5/mt, hovering nearly unchanged.
  • Last trade was $8,272.5/mt (6:45 AM CST)
  • As of last Friday’s close, LME Copper prices had fallen for three straight weeks, down nearly 5% in the period. Most of the downward pressure stems from China’s continually weakening economy and faltering real estate sector. This is the first time that copper prices have fallen for three straight weeks since late April.
• Prompt month CME HRC Steel last settled at $807/st (6:45 AM CST).
  • Per its labor agreement, the United Steel Workers (USW) labor union cannot block a potential buyout of US Steel, the company stated late last week. Earlier in the week, the USW stated that it would only back a potential buyout by Cleveland Cliffs, citing Cleveland Cliffs' warm relationship with its employees. The USW had also transferred its contractual right to bid on US Steel’s assets to Cleveland Cliffs. US Steel acknowledged this transfer of rights but also stated that the rights holder cannot veto a transaction. US Steel’s current contract with the union also stipulates that a new labor agreement must be in place before a sale is finalized. (Sources: Reuters, Axios)

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

08/18/2023: Steel Buyers Can Strengthen Pricing Power During Industry Consolidation

08/16/2023: AEGIS Factor Matrices: Most important variables affecting metals prices

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

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

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

8/17/2023: Focus: How U.S. Steel became an acquisition target

8/17/2023: Chile's Codelco at risk of insolvency as debt grows, CESCO report says

8/17/2023: U.S. to impose tariffs on tin mill steel from Canada, China, Germany -Commerce Dept

8/16/2023: US welcomes WTO panel report on China steel, aluminum tariffs

8/16/2023: Chinese duties on U.S. imports 'inconsistent' with WTO obligations

8/16/2023: Demand headwinds mean no respite in pressure on aluminium prices

8/15/2023: China's economic woes mount as trust firm misses payments, home prices fall

8/15/2023: China's aluminium production soars in July with optimistic outlook for August

8/14/2023: China's July crude steel output eases on production curbs

8/14/2023: Esmark CEO says has money in bank account for $7.8 billion US Steel bid

8/14/2023: U.S. Steel shares jump after Esmark makes $7.8-billion offer

8/14/2023: Surpluses, low prices to remain a feature of cobalt market

8/14/2023: China's July crude steel output eases on production curbs

8/14/2023: China-based EV manufacturers cut vehicle prices

8/14/2023: US Steel rejects Cliffs' takeover bid

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