May 23, 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 down $28.5/mt and is now negative on the week.
  • Last trade was $2,612/mt (6:45 AM CST)
  • Investment funds, generally speculators in metals markets, purchased a mere 800 (net) contracts of LME aluminum last week. This is the lowest level of buying they have done since they started building a massive long position in early March. Also, this small amount of buying does not recoup the 3,700 contracts they liquidated during the week ending May 10. (Source: LME)
• LME Copper 3M Select is up $7/mt, essentially unchanged after yesterday’s steep losses.
  • Last trade was $10,403/mt (6:45 AM CST)
  • Investment funds are still aggressively buying LME copper. Last week, these funds added another 4,200 (net) contracts to their position, bringing the total to 71,900 (net) contracts. This position has more than doubled since early April and has greatly contributed to the rally in that time. Copper prices rallied over 6% last week, largely due to this continued spec buying amid fears over potential supply constraints. (Source: LME)
• Prompt month CME HRC Steel last settled at $789/st (6:45 AM CST).
• Like other LME metals, investment funds have been massive buyers of lead. In early April, these investment funds had their largest-ever short position in LME but have since flipped to their largest long position since last November. These funds have purchased over 37,000 contracts (net) since early April, bringing their long position to approximately 22,440 contracts. This likely contributed to the 8% rally in that time. If you have exposure to the lead market and are looking for hedging strategies, please reach out to AEGIS. (Source: LME)
• *Due to the Memorial Day holiday, we will not produce the Metals First Look on Friday, May 24, and Monday, May 27. Likewise, we will not produce and publish the Weekly Dashboard for Saturday, May 25. The trading desk will provide market coverage on both Friday and Monday, and current clients can contact metals@aegis-hedging.com for indications. *

Price Indications

Today's Charts

AEGIS Insights

5/22/2024: AEGIS Factor Matrices: Most important variables affecting metals prices

5/2/2024: Important US Economic Data (AEGIS Reference)

4/25/2024: Mexico's New Tariffs on Steel and Aluminum Imports Create Uncertainty in US Markets

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

5/22/2024: Fed minutes May 2024: Concern over stubborn inflation (cnbc.com)

5/22/2024: US says tariff increases on Chinese EVs, batteries and chips to start Aug. 1

5/22/2024: EU new car sales jump 13.7% in April, industry body says

5/21/2024: Exclusive: Southern Copper's stalled Tia Maria project set to break ground in Peru, VP says

5/20/2024: Rio Tinto declares force majeure on Queensland alumina exports

5/20/2024: Main facts about the copper market as prices hit record highs

5/20/2024: Nippon Steel executive to visit U.S. to meet stakeholders of U.S. Steel deal

5/20/2024: Focus: Copper's record run at risk as US shipments calm speculator frenzy

5/20/2024: Zimbabwe lithium miners table refinery plans under govt pressure

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.