Copper and Aluminum Lower on Fed Rate Decision Speculation

Note: Clients with AEGIS Platform access can see this and other research, plus hedge portfolio reporting and tools here. 

• LME Aluminum 3M Select trades $0.25 higher to $3411 at 8:30:25 AM

• LME Copper 3M Select trades $-124.5 lower to $13688.5 at 8:30:25 AM

  • (Bloomberg) – Copper fell more than 1% to wipe out the gains of earlier this week after US Federal Reserve Chair Kevin Warsh sparked speculation about rate hikes.  For metals, that quashed a burst of bullish sentiment after the US and Iran agreed to sign an interim peace agreement. Oil prices slumped on Thursday, further calming worries about the war’s impact on the global economy.  Still, in his first press conference as the head of the Fed, Warsh repeatedly emphasized the central bank’s commitment to fighting inflation, prompting rate futures traders to fully price a quarter-point hike by October.  The movements cap what has been a stark shift in the market’s expectations for the direction of US monetary policy over the past few months, one that’s persisting even as oil prices pull back. That’s because energy prices have only been one factor keeping inflation stubbornly above the Fed’s target.  The outlook for the Fed’s moves has a global bearing on commodities markets, with higher rates raising costs for importers who need to pay for copper and other goods in dollars. The copper market is also benefiting from a surge in investment in data centers in the US and elsewhere, and higher rates could raise worries about the pace of that spending. 

• CME HRC Steel last traded at $1120 and $-2 lower at 6/17/2026

Price Indications

Today's Charts

Metals Factor Matrix

AEGIS Factor Matrices: Most important variables affecting metals prices

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.