April 12, 2024

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

• LME Aluminum 3M Select is up $34/mt, hovering near the recent highs.
  • Last trade was $2,491/mt (6:45 AM CST)
  • The forward curve for the CME Midwest Premium (MWP) has been in a very tight range since early January and remains in a contango throughout 2024. The prompt month April contract currently hovers near 20 cents, while the December ’24 contract is trading near 22 cents. If you have exposure to the CME MWP market or need advice on how to trade this contango market, please reach out to AEGIS for strategies. (Source: CME)
• LME Copper 3M Select is up $173.5/mt, adding to this week’s strength.
  • Last trade was $9,534.5/mt (6:45 AM CST)
  • The LME Copper Cash – 3M spread, a key gauge of spot demand, continues to sink to record lows. As of this writing, the LME copper cash contract is trading at an approximate $135/mt discount to the benchmark 3M, the lowest level since at least 1994. This suggests that spot demand has slumped while prices have surged. (Source: LME)
• Prompt month CME HRC Steel last settled at $850/st (6:45 AM CST).
• The US Justice Department has opened an investigation into Nippon Steel’s potential buyout of US Steel. This deal has become a hot-button issue for the steel industry in recent months. Please reach out to AEGIS for implications this could have on the CME HRC steel market. (Source: Reuters)

Price Indications

Today's Charts

AEGIS Insights

4/10/2024: AEGIS Factor Matrices: Most important variables affecting metals prices

4/3/2024: Important US Economic Data (AEGIS Reference)

3/20/2024: Midwest Premium Buyers Should Hedge While Prices Hover at 3-Year Lows, and Demand Appears To Be Stabilizing

2/27/2024: Aluminum Consumers Should Still Implement Hedges, Even Though Russia Sanctions Mean Little

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

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

4/9/2024: Gold hits record high for eighth session in a row

4/8/2024: US must boost Africa ties to secure key minerals, report says

4/5/2024: Zambia's copper output may rise to 1 mln tons by 2026 as mines expand

4/4/2024: Ford delays some North American electric SUV, truck production

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.