- LME Aluminum 3M Select is trading $20.77 lower at $2,381.5/mt, extending yesterday's losses (9:05 AM CDT)
- LME aluminum prices dropped to a two-week low as China's manufacturing activity slowed in August, weighing on global demand. Aluminum prices have surged by nearly 9% in August, driven by rising alumina costs, strong demand from China’s solar energy, grid infrastructure, and electric vehicle sectors, and temporary supply disruptions. Despite the recent price strength, analysts at Morgan Stanley caution that aluminum’s momentum may wane as global production hits an all-time high and demand stabilizes. Long queues at Port Klang have added temporary pressure on contracts, but the sustainability of aluminum’s price rally is uncertain as supply ramps up and China resumes its role as a net exporter. Meanwhile, speculators increased their net bullish LME aluminium bets to a seven-week high. (Bloomberg, Reuters)
- LME Copper 3M Select trades $247.34 lower at $8,810/mt, as prices extend last week’s losses (9:05 AM CDT)
- Goldman Sachs has cut its 2025 copper price forecast by nearly $5,000 to $10,100 per ton, reflecting growing concerns over weaker demand from China. This downgrade follows China’s disappointing economic recovery, marked by a prolonged property downturn and challenges in its manufacturing and export sectors. These issues have contributed to rising copper inventories and an unexpected surge in Chinese exports, eroding the bullish outlook that previously drove copper prices to over $11,000 per ton. Despite closing its long-standing bullish position, which offered a 41% gain, Goldman still sees potential for a supply deficit in the future and may revisit the trade. (Bloomberg)
- Prompt CME HRC Steel last traded at $700/st, down $14 from Friday’s settle
- Vice President Kamala Harris joined President Joe Biden in opposing the $14.1 billion sale of United States Steel to Japan's Nippon Steel, emphasizing that US Steel should remain American-owned and operated. Speaking at a Labor Day event in Pittsburgh, Harris highlighted the importance of maintaining strong American steel companies for national security and the future of union jobs. This stance aligns with Biden and has garnered support from the United Steelworkers union, which has also voiced concerns about the deal. Nippon Steel has responded by pledging an additional $1.3 billion investment in US Steel’s unionized mills, but the transaction faces increasing political resistance. The sale is currently under review by the Committee on Foreign Investment in the United States, and its outcome remains uncertain as the debate intensifies ahead of the November election. (Bloomberg)
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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.
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