April 18, 2024

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• LME Aluminum 3M Select is up $28/mt, adding to this week’s strength.
  • Last trade was $2,598/mt (6:45 AM CST)
  • President Biden is proposing new 25% tariffs on Chinese-produced aluminum and steel products, he proclaimed during a campaign speech in Pennsylvania on Wednesday. This is approximately three times higher than the current tariff. US officials will also launch an investigation into China’s shipbuilding industry. Imports of Chinese aluminum and steel products have dropped substantially in recent years, but the new measures will further strengthen the current anti-dumping safeguards, the officials stated. (Source: Bloomberg)
• LME Copper 3M Select is up $155/mt, making new highs for the week.
  • Last trade was $9,703/mt (6:45 AM CST)
  • Zambian copper miners continue to struggle with production due to ongoing electricity supply issues. On Wednesday, the country’s power utility announced force majeure to several important copper mines due to ongoing drought that has hindered hydroelectricity production. Zambia is an important emerging copper producer and is the second largest in Africa, but it has struggled in recent years due to these weather and electrical issues. (Source: Bloomberg)
• Prompt month CME HRC Steel last settled at $840/st (6:45 AM CST).
• Russia’s Nornickel, the world’s largest producer of refined nickel and palladium, warns of increased price volatility due to the recently announced sanctions. (Please note that nickel was sanctioned by the US and UK, but palladium was not.) If you are an end-user of either metal and are concerned about price volatility, please get in touch with AEGIS for hedging strategies. (Sources: Bloomberg, Reuters)

Price Indications

Today's Charts

AEGIS Insights

4/17/2024: 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

4/17/2024: Russia is in close contact with metals industry after sanctions, Kremlin says

4/17/2024: Glencore acts to profit from LME post-sanction rule change

4/16/2024: Japan's Nissan bets on solid-state batteries, gigacasting for next-gen EVs

4/16/2024: Carbon capture will not play major role in steel decarbonisation, report says

4/15/2024: 'No immediate supply-demand shock' from LME ban on Russian metals, Goldman says

4/15/2024: Exclusive: Russia and China trade new copper disguised as scrap to skirt taxes, sanctions

4/15/2024: Global mining investment too low to support energy transition, Rio Tinto chairman says

4/15/2024: North Carolina approves mining permit for Tesla supplier Piedmont Lithium

4/13/2024: LME Press Releases

4/12/2024: United States and United Kingdom Take Action to Reduce Russian Revenue from Metals

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.