- LME Aluminum 3M Select trades $24.73 lower at $2,605.5/mt; prices reverse some of last week’s gains (8:30 AM CDT)
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Aluminum cans are gaining popularity as a beverage packaging option, boosting prospects for major producers like Ball and Crown Holdings. Both companies are forecasting higher volumes and market share growth as consumers and beverage companies shift away from plastic and glass due to environmental concerns and sustainability goals. This shift has driven Ball to project a 2-3% year-over-year volume growth through 2030 and Crown to raise its earnings outlook as demand rebounds. Factors like Coca-Cola's move to can its Dasani water brand to meet environmental guidelines, along with higher recycling rates of aluminum compared to plastic, are further supporting the trend. Despite manufacturing emissions being comparable to plastic, aluminum cans are perceived as more eco-friendly due to their higher recycled content and recyclability rates. With beverages sold in cans capturing 21% of the U.S. market, up from 17% in 2019, Ball and Crown see continued opportunity for expansion, particularly in Europe, where aluminum accounts for a smaller share of the beer packaging market compared to North America. (Bloomberg)
- LME Copper 3M Select trades $70.53 lower at $9,776/mt; prices reverse some of last week’s gains (8:30 AM CDT)
- Chile’s copper production is showing signs of recovery, posting its highest monthly output of 2024 in August with a 7.1% year-over-year increase, as the country rebounds from a series of operational disruptions and project delays that previously drove production to a 20-year low. The surge, which marks the largest haul since December, is being driven by improved operations at state-owned Codelco and BHP’s Escondida mine, which is accessing richer ore, as well as the ramp-up of the revamped Quebrada Blanca mine. This rebound is a positive development for the global copper market, which has been experiencing tightness in concentrate supply. (Bloomberg)
- CME HRC Steel last traded at $735/st; prices trade $1 higher from Friday's settle
- Iron ore prices surged as Shanghai, Guangzhou, and Shenzhen, three of China’s largest cities, eased home-buying restrictions to support the struggling property sector. The measures, which include lower downpayment ratios and mortgage refinancing options, are part of Beijing’s broader efforts to stimulate the economy and revive demand for steel and construction materials. This boosted futures prices in Singapore and lifted base metals like copper and zinc at the start of LME Week in London. After a prolonged slump, the Chinese property market’s rebound is revitalizing iron ore, one of this year’s worst-performing commodities, as demand outlooks improve amid a traditionally strong season for steel products. While production remains abundant from major exporters in Brazil and Australia, traders are optimistic that China’s recent policy shift will continue to support prices and maintain bullish momentum. (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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