February 5, 2024

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• LME Aluminum 3M Select is down $16.5/mt, falling nearly 1% this morning.
  • Last trade was $2,220/mt (6:45 AM CST)
  • During its 4Q2023 earnings release late last week, Ball Corporation, a beverage can producer and a large aluminum end-user, reported better-than-expected results partially due to lower input costs. The company also stated that it was working on reducing other costs, such as warehousing and freight. As for 2024, its CFO said they expect higher volumes and earnings this year. (Source: Reuters)
• LME Copper 3M Select is down $33.5/mt, adding to last week’s losses.
  • Last trade was $8,430.5/mt (6:45 AM CST)
  • Due to expected supply constraints over the coming years, hedge funds have become quite bullish on copper. This has led to several of the world’s largest hedge funds making significant investments in miners and other copper-related equities in recent months. Demand is largely dependent on interest rates and China, they reiterated during recent interviews. (Source: Bloomberg)
• Prompt month CME HRC Steel last settled at $967/st (6:45 AM CST).
  • US Steel reported better-than-expected 4Q2023 results late last week, with net sales topping $4 billion. Although the market welcomed these stellar results, at least two analysts quoted by Bloomberg are leery that the potential buyout by Nippon Steel will occur this year. Both companies remain optimistic, though, with US Steel expecting the sale will be completed by the 2^nd or 3^rd quarter of 2024. (Source: Bloomberg)  

Price Indications

Today's Charts

AEGIS Insights

2/2/2024: China's Real Estate Woes Provide Opportunity for Copper Consumers

1/31/2024: AEGIS Factor Matrices: Most important variables affecting metals prices

1/25/2024: Aluminum Starts 2024 On a Down Note, But Potential Supply Shocks Give Consumers a Reason to Hedge

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

2/1/2024: Glencore reports lower production, builds solar plant in South Africa

1/30/2024: Russia the driver behind China's aluminium import boom

1/29/2024: Nucor's fourth-quarter sales, profit decline on lower pricing, volumes

1/29/2024: ArcelorMittal South Africa in talks to avert factory closure

1/28/2024: Column: Another US primary aluminum smelter bites the dust

1/27/2024: Chinese companies to invest up to $7 billion in Congo mining infrastructure

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.