January 22, 2024

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• LME Aluminum 3M Select is down $17/mt; its fourth consecutive down day.
  • Last trade was $2,155.5/mt (6:45 AM CST)
  • After last month’s surge of Russian aluminum into the LME system, this metal could already be leaving the LME’s warehouses. Canceled warrants, meaning the metal is set for delivery, in South Korea have spiked from 5,750 mt on January 8 to 45,175 mt as of last Friday. The LME’s South Korean warehouses are a known repository of Russian metal. The trading of Russian aluminum has become a taboo subject recently, with many Western buyers shunning Russian metal. In early December, the UK banned its citizens and companies from trading Russian metals, leading to the recent surge of Russian aluminum into the LME. (Source: LME)
• LME Copper 3M Select is down $39/mt, pulling back after Friday’s gains.
  • Last trade was $8,341/mt (6:45 AM CST)
  • Glencore and Trafigura want Chinese copper smelters to use spot refining fees for 2024 refined copper production rather than setting long-term contracts, the companies stated late last week. These fees, known as treatment charges, were usually set yearly between smelters and large miners such as Trafigura and Glencore. Spot treatment charges in China have fallen dramatically in recent months due to low copper supply amid poor end-user demand. Glencore and Trafigura also want these smelters to agree to cap on these fees in case supply or demand increases. (Source: Reuters)
• Prompt month CME HRC Steel last settled at $1,070/st (6:45 AM CST).
  • Tata Steel, one of the world’s largest steelmakers, will shutter its two UK-based blast furnaces due to unprofitability, the company announced last Friday. The two blast furnaces have a combined production capacity of 5 million mt/year but have only been producing 3.2 million mt/year recently. They also stated that the decommissioning process will be completed by the end of 2024. These blast furnaces will be replaced by a more efficient, less polluting 3 million mt/year electric arc furnace that will start steel production in 2027. (Source: S&P Global, Reuters)

Price Indications

Today's Charts

AEGIS Insights

1/17/2024: AEGIS Factor Matrices: Most important variables affecting metals prices

1/11/2024: Important US Economic Data (AEGIS Reference)

1/4/2024: Year-End Review of LME Aluminum, Copper, CME HRC Steel and Hedging Implications for 2024

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

1/18/2024: Glencore, Trafigura target spot prices for mined copper sales, sources say | Reuters

1/18/2024: LME CEO aims to have first contracts with Shanghai futures exchange in 2024

1/16/2024: Ni prices unlikely to rebound in near term

1/16/2024: China 2023 aluminium output hits record high but growth rate slows

1/16/2024: Africa not W Australia to grow Rio Tinto iron ore

1/16/2024: Most cobalt producers loss-making after 2023 price slump - ERG

1/15/2024: London Metal Exchange's growing Russian aluminium problem

1/15/2024: LME to suspend 10% of listed metals brands until they submit responsible sourcing audit

1/15/2024: First Quantum to cut Australian nickel mine output, slash workforce

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