August 29, 2023

• LME Aluminum 3M Select is up $10/mt and is trying to break a three-day losing streak.
  • Last trade was $2,162/mt (6:45 AM CST)
  • Rusal’s profits plummeted to $420 million in 1H2023, down from $1.68 billion in the same period last year. This substantial drop in profits is mainly due to falling aluminum prices while alumina and other production costs increased. The alumina costs have increased recently as they have had to rely on higher-priced imports due to sanctions. Rusal is also currently cut off from its refinery in Ukraine due to the war. Meanwhile, the company is selling aluminum at a discount to the LME. Due to self-sanctioning efforts by Western buyers, Rusal has had to seek other buyers, namely China. (Source: Bloomberg)
• LME Copper 3M Select is up $38.5/mt, up slightly to start the week.
  • Last trade was $8,397.5/mt (6:45 AM CST)
  • The search for copper in formerly underutilized regions continues. China-based Zijin Mining Group Co, which opened the Cukaru Peki copper and gold mine in eastern Serbia about two years ago, is exploring plans to further expand the operation, according to Serbian officials. Zijin has already invested about $678 million into the project, and the next phase will be $3.5 billion to $3.8 billion. The mine produced 111,000 mt of copper last year, according to Zijin. (Sources: Zijin Mining Group, Bloomberg)
• Prompt month CME HRC Steel last settled at $801/st (6:45 AM CST).
  • Earlier this month, Mexico hiked its tariff on imports of steel and aluminum products. Specifically for steel, the government raised the tariff on most products to 25%, up from 15% previously. This will likely slightly impact South Korea’s steel exports to Mexico, according to the Korea Iron and Steel Association (KOSA). This is mainly because 85% of Mexico’s steel exports cannot be tariffed due to the Mexican government's Program of Sectoral Promotion (Prosec). In 2022 South Korea exported 2 million mt of steel products to Mexico. (Source: Argus)

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Price Indications

Today's Charts

AEGIS Insights

08/25/2023: Growing Secondary Aluminum Supply Could Further Weigh on Prices

08/23/2023: AEGIS Factor Matrices: Most important variables affecting metals prices

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

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

08/25/2023: Growing Secondary Aluminum Supply Could Further Weigh on Prices

08/23/2023: AEGIS Factor Matrices: Most important variables affecting metals prices

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

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

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