Aluminum Explainer: Options as a risk management tool
An explainer on how aluminum options function as price insurance, outlining common strategies and practical use cases for producers and consumers.
An explainer on how aluminum options function as price insurance, outlining common strategies and practical use cases for producers and consumers.
As aluminum markets head into 2026, LME prices appear structurally supported while the Midwest premium looks increasingly risky and politically distorted, forcing buyers and sellers to hedge very differently.
Base metals ended mostly lower last week as many complexes were quite overbought and arguably due for a correction.
This piece examines how markets responded over the past 24 hours to the Federal Reserve's latest rate cut, tracking shifts in metals and money markets following Chair Powell's comments.
Industry respondents overwhelmingly expect UBC prices to remain stable in the current month, even as Class scrap and Midwest premium expectations point in different directions.
It was a generally more positive week for most markets as a better tone in US equities ushered in a measure of stability. The bitcoin/crypto sell-off eased somewhat as well. Some of the battered AI-related names also recovered. The likelihood of another December Fed rate cut this week also helped sentiment.
This AMU Explainer breaks down how LME open interest works and how it can help you interpret shifts in market sentiment and price direction.
Scrap discounts remain exceptionally wide to the Midwest transaction price. Some seasonal tightness may occur, but still affords rolling mills and extruders excellent earnings potential.
AMU Explainer is a series where we demystify parts of the aluminum industry.
For a third week in a row, there was intense volatility in the US equity markets that spilled over into metals, bitcoin, and energy. Bitcoin is now trading at a seven-month low while some of the other cryptocurrencies have rolled back pretty much their entire yearly advance in just the last three weeks. A stronger dollar – now at a six-month high – contributed to the general selling.