- LME Aluminum Select trades $33.50 higher at $2,587/mt (9:30 AM CDT)
- China's alumina prices surged further, rising by RMB 51 per tonne to reach RMB 4,607 (USD 647) per tonne on October 18. The trend reflects ongoing supply disruptions, particularly from Guinea, where bauxite exports have been halted due to customs blockades. Prices increased across various provinces, including Shandong, Henan, and Guangxi, with gains of up to RMB 75 per tonne. Despite these challenges, aluminum smelters in Yunnan province are expected to maintain production due to robust hydropower supply. Meanwhile, China's alumina exports to Russia have surged 41% year-on-year, marking a shift from being a net importer to a net exporter. Speculation has also arisen around Guinea potentially following Indonesia's path of restricting raw material exports, especially after agreements to build a new alumina refinery were signed. (AlCircle)
- LME Copper 3M Select trades $84 higher at $9,600/mt
- BHP has halted operations at its Olympic Dam copper mine in South Australia after severe storms damaged power transmission towers, cutting off electricity to the site. The mine, located about 560 kilometers north of Adelaide, has been shifted to backup generators for essential functions, while the company assesses the damage alongside ElectraNet. The temporary suspension is expected to last five to seven days, reminiscent of a 2016 power outage that led to a 15-day halt costing $137 million. Olympic Dam, which processed 322,000 tonnes of copper in 2023-24, is a key asset for BHP, which has plans to double its smelting capacity by the mid-2030s as part of its expansion strategy in copper. (Bloomberg)
- CME HRC Steel last traded at $705/st; prices were unchanged from yesterday's settle
- Iron ore and copper prices rebounded after China’s central bank introduced additional measures to stimulate the economy, following data that showed slower-than-expected growth in Q3. The People's Bank of China's actions have lifted market sentiment, boosting optimism about Beijing's commitment to economic support. Despite the positive moves, the commodities sector remains under pressure, especially from weak demand in China’s struggling property sector, a crucial driver for steel and iron ore. As of Friday, iron ore was up 2.4% at $102 a ton in Singapore, while copper gained 1.3% on the LME. Both, however, were still set for weekly declines of 4% and 1.7%, respectively. (Bloomberg)
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