September 5, 2023

• LME Aluminum 3M Select is down $13/mt, falling over 1% as of this writing.
  • Last trade was $2,187.5/mt (6:45 AM CST)
  • The LME’s warehouses in South Korea have become a “battleground” for aluminum stocks, according to recent comments by Andy Home of Reuters. As of this writing, 252,675 mt, or approximately 50% of the LME aluminum inventories, are in South Korean warehouses. The LME’s South Korean warehouses are a known repository of Russian metal. Inventories in these South Korean warehouses have risen nearly 10-fold since January, as several large traders have delivered Russian-origin aluminum into these warehouses amid ample supplies and subpar global demand. (Source: Reuters, LME)
• LME Copper 3M Select is down $22/mt, continuing this week’s pullback.
  • Last trade was $8,428/mt (6:45 AM CST)
  • Aurubis AG, Europe’s largest copper producer, has fallen victim to an alleged theft ring that has stolen thousands of tons of materials, the company announced late last week. Due to the theft, the company will miss its full-year profit target, they also stated. An investigation and inventory count are ongoing, so the exact volumes are unknown. (Source: Reuters)
• Prompt month CME HRC Steel last traded at $712/st, down $8/st (6:45 AM CST).
  • Iron prices in Asia have jumped 15% since mid-August, even though some market participants have been disappointed by China’s slow rollout of economic stimulus measures. Australia’s ANZ Bank feels that the recent rally will be “short-lived” and that “the rally is susceptible to a bit of a sell-off if we don’t see any follow-through evidence that [China’s] economy is improving.” Another Australian bank, Westpac, echoed similar comments, stating that the objective of the recent stimulus measures was “to prevent the downward spiral in sentiment from continuing” (Source: Bloomberg)

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Price Indications

Today's Charts

AEGIS Insights

08/30/2023: AEGIS Factor Matrices: Most important variables affecting metals prices

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

8/31/2023: Emirates Global Aluminium H1 profit falls 66% to $533m

8/31/2023: Japan’s domestic car output continues slow recovery

8/30/2023: SMM Spot Aluminum Market Comment: High Aluminum Prices Dented Buying Appetite

8/30/2023: Indonesian nickel smelters turn to Philippines for ore as local supply tightens

8/29/2023: US HRC: Prices remain under pressure, fall

8/29/2023: Column: South Korea's Gwangyang is the new LME aluminium battleground

8/29/2023: Chinese steel demand declining less than data suggests, says Vale executive

8/29/2023: U.S. Steel starts due diligence after entering agreements with 'numerous third parties'

8/29/2023: Sibanye still in race for Zambia's Mopani Copper Mines

8/24/2023: Auto strike risk looms over US steel market

8/24/2023: Congo wants ERG copper, cobalt assets in bid to regain control

8/23/2023: Korea sees limited impact from Mexico steel tariff hike

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