December 21, 2023

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• LME Aluminum 3M Select is down $11.5/mt, continuing the recent downtrend.
  • Last trade was $2,234/mt (6:45 AM CST)
  • Compared to October, global daily primary aluminum production ticked lower last month, mainly due to lower output in top-producing China. Daily total output was 196,400 mt in November, down from 197,400 mt in October. Chinese daily production was 116,700 mt last month, down slightly from 117,900 mt in October. Africa was the only other region that experienced a significant drop in production on a month-over-month basis. Nearly every region has grown compared to November 2022. (Source: International Aluminum Institute, Bloomberg)
• LME Copper 3M Select is down $37/mt, trending sideways.  
  • Last trade was $8,559/mt (6:45 AM CST)
  • Antofagasta, one of the world’s largest copper miners, will spend $5.4 billion to expand its Centinela mine in Chile, the company announced on Wednesday. This expansion will add 144,000 mt to annual production and will also include cost-saving measures. “This decision reflects the confidence we have in copper. The world is facing an important scarcity of this metal owing to the increase in demand generated by electrification and decarbonization of major economies,” Antofagasta Chief Executive Officer Ivan Arriagada stated. (Source: Bloomberg)
• Prompt month CME HRC Steel last settled at $1,074/st (6:45 AM CST).
  • In 2023, stainless steel prices in the US fell by 10% due to weakening demand and falling prices for nickel, a key raw material for stainless steel production. Similarly, US production in 1H2023 fell by 13.5% to 942,000 mt due to poor demand. This tepid end-user demand will likely carry into 2024, Argus suggested earlier this week. (Source: Argus)

Price Indications

Today's Charts

AEGIS Insights

12/20/2023: AEGIS Factor Matrices: Most important variables affecting metals prices

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

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

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

12/20/2023: Moscow takes control over assets of Western companies

12/20/2023: US 'buy now, pay later' splurges raise holiday debt hangover risk

12/19/2023: Viewpoint: Stainless weakness to persist into 2024

12/19/2023: US shuts Eagle Pass, El Paso rail links to Mexico

12/19/2023: Funds less negative on copper as supply landscape shifts: Andy Home

12/18/2023: Wall St builds on rally as Fed euphoria lingers

12/18/2023: Japan's Nippon Steel to acquire U.S. Steel for $14.9 billion

12/18/2023: Exclusive: LME plans new metals contracts using ShFE prices -sources

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.