December 11, 2023

Note: Clients with AEGIS Platform access can see this and other research, plus hedge portfolio reporting and tools here. 

• LME Aluminum 3M Select is down $10.5/mt, bouncing after four days of losses.
  • Last trade was $2,123.5/mt (6:45 AM CST)
  • European Aluminum, the continent’s top aluminum association, is calling for stronger bans on Russian aluminum. Currently, only a small portion of Russian-made aluminum products are banned, including wire, tubes and pipes. In a letter to the EU’s governing body, European Aluminum stated, "We regret the fact that the vast majority of Russian aluminum exports to the EU (more than 85% of the total), in particular primary metal, look set to remain outside of the scope of the measures." (Source: Reuters)
• LME Copper 3M Select is down $73/mt, continuing on yesterday’s gains.  
  • Last trade was $8,365/mt (6:45 AM CST)
  • Anglo American, one the world’s largest copper miners, plans to drastically cut its copper production due to soaring costs as well as operational and logistical issues, the company announced late last week. Production in 2024 will likely total 730,000 to 790,000 mt, down from their prior estimate of 1 million mt. Production will also be down in 2025. “Given continuing elevated macro volatility, we are being deliberate in reducing our costs and prioritizing our capital to drive more profitable production on a sustainable basis,” the company stated. (Source: Bloomberg)
• Prompt month CME HRC Steel last settled at $1,070/st (6:45 AM CST).
  • Iron ore prices, the key raw material for most of China’s steel production, have surged to a 10-month high while steelmakers rebuild inventories. The country’s real estate sector will soon enter a seasonal lull, but demand is expected to increase in the spring due to economic stimulus measures. “Market fundamentals are actually good, and mills had begun to restock imported ores in anticipation of post-Lunar New Year demand,” Wei Ying, an analyst at China Industrial Futures Co, reiterated late last week. (Source: Bloomberg)

Price Indications

Today's Charts

AEGIS Insights

12/8/2023: Aluminum and Copper Markets Diverge but Hedging Opportunities Persist for End-Users

12/06/2023: AEGIS Factor Matrices: Most important variables affecting metals prices

12/06/2023: Important US Economic Data (AEGIS Reference)

11/17/2023: Aluminum and Copper End-Users Should Hedge As Inflation Eases

12/8/2023: Aluminium group calls for EU to go much further on Russian bans

12/5/2023: Rio Tinto to fully move towards renewable diesel at Kennecott

12/4/2023: First Quantum agrees with Zambian firm to fast-track copper project

12/4/2023: Insight: Western start-ups seek to break China's grip on rare earths refining

Important Disclosure: Indicative prices are provided for information purposes only, and do not represent a commitment from AEGIS Hedging Solutions LLC ("Aegis") to assist any client to transact at those prices, or at any price, in the future. Aegis makes no guarantee to the accuracy or completeness of such information. Aegis and/or its trading principals do not offer a trading program to clients, nor do they propose guiding or directing a commodity interest account for any client based on any such trading program. Certain information in this presentation may constitute forward-looking statements, which can be identified by the use of forward-looking terminology such as “edge,” “advantage,” “opportunity,” “believe” or other variations thereon or comparable terminology. Such statements are not guarantees of future performance or activities.