- LME Aluminum 3M Select trades $18.86 lower at $2,367.5/mt, extending yesterday's losses (8:26 AM CDT)
- Aluminium prices dipped slightly, reflecting concerns over a growing supply surplus. Global production exceeded consumption by 97,200 tons in June, contributing to a market surplus of nearly 720,000 tons in the first half of the year. Despite a significant reduction in LME inventories over the past three months, the market remains oversupplied. China's aluminium output surged 6% year-on-year in July, reaching its highest monthly production since 2002, driven by new projects in Inner Mongolia and strong production in other regions. The market is also seeing a reduction in open interest, signaling long liquidation amid persistent supply concerns. (Reuters)
- The London Metal Exchange (LME) is planning to boost electronic trading in its monthly contracts, potentially reducing the activity in its traditional three-month rolling contracts. The new measures require dealers to place small trades electronically, aiming to make monthly contracts the key liquidity point, similar to rival exchanges. These changes are part of LME’s broader efforts to modernize the market, following the 2022 nickel crisis. However, they may disrupt current dealer practices, which rely heavily on phone-based trades. The LME hopes the move will enhance market participation and align with global regulatory trends. (Bloomberg)
- LME Copper 3M Select trades $16.15 higher at $8,846/mt, as prices reverse some of Tuesday's losses (8:26 AM CDT)
- Copper prices steadied near $9,000 a ton after five consecutive days of losses, driven by concerns over weakening demand in China. Goldman Sachs cut its 2025 copper forecast by $5,000 amid mounting uncertainty around China's economic prospects. Iron ore's decline below $100 a ton and a market selloff exacerbated fears of turbulence in China's economy. Despite copper’s record high of $11,000 in May, the ongoing property crisis has dampened demand and confidence. A weaker dollar on Wednesday offered limited support, with market participants awaiting key US data. (Bloomberg)
- Prompt CME HRC Steel last traded at $690/st, down $10 from yesterday's settle
- U.S. Steel's CEO, David Burritt, warned that the company may close steel mills and relocate its headquarters from Pittsburgh if its sale to Japan's Nippon Steel collapses. The nearly $3 billion investment Nippon has pledged is crucial for keeping the aging mills competitive. Burritt expressed concern over the opposition to the deal, which includes political figures like Kamala Harris and union leaders. Nippon Steel, the fourth-largest steel producer, has increased its investment commitment and pledged no layoffs through 2026, but political and labor opposition remains strong. (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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