China's Economy Slows Most in Three Years; Copper Prices Steady

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

• LME Aluminum 3M Select trades $-24.50 lower to $3152.50 at 8:18:45 AM

• LME Copper 3M Select trades $-42 lower to $13599.50 at 8:18:46 AM

  • (Bloomberg) – Copper steadied as traders weighed mixed economic signals from key buyer China and ongoing hostilities in the Middle East, alongside reduced expectations for Federal Reserve interest-rate hikes.  China’s economy slowed more than expected last quarter to the weakest pace in more than three years. Still, industrial production in June beat forecasts, while a smaller drop in new home prices fueled hopes that the nation’s battered real estate market is stabilizing.  The dollar weakened on Tuesday after cooler-than-expected US inflation data prompted traders to pare bets on further Fed rate hikes, making metals prices in the currency cheaper for most buyers.

    Some indicators also pointed to tightness in the physical market. Canceled warrants — orders to withdraw metal from London Metal Exchange warehouses — have climbed to the highest since October 2021. Meanwhile, prompt copper contracts on the Shanghai Futures Exchange traded at a premium to later-dated contracts, a sign of tightening near-term availability.  The metal, seen as a proxy for global growth, has traded in a relatively narrow range over the past couple of weeks. However, the resumption of fighting in the Middle East war is now exposing it to the risk of slowing world economy. The US launched attacks against Iran for a fifth straight day on Wednesday, with President Donald Trump pledging to intensify his bombardment until Tehran stops attacking ships in the Strait of Hormuz. 

• CME HRC Steel last traded at $1156 and $-2 lower at 8:30:53 AM 

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.