- LME Aluminum Select 3M Select trades $100 higher at $2,715.50/mt (8:26 AM CDT)
- Alcoa has declared force majeure on bauxite supplies from its Juruti mine in Brazil due to a stranded vessel blocking the channel near the port, a disruption that could further tighten global alumina supplies as production struggles worldwide. This issue impacts supply to the Alumar refinery, where Alcoa has a significant stake, and comes as alumina prices have surged to multi-year highs, with Australian alumina at $723/mt on Nov 7, up $373/mt since the start of this year and the highest level since Platts started the assessment in August 2010. With supply disruptions in Guinea, Australia, and high demand from China, the outlook remains tight for alumina buyers. (Bloomberg)
- US tariffs on Chinese aluminum, currently at 25%, may increase under Trump, yet the impact on China’s major producers like Chalco and Hongqiao is expected to be minimal due to their limited export volume to the US. Since anti-dumping measures began in 2016, Chinese aluminum exports to the US have fallen by over 65%, now representing only 4.5% of China’s total exports. After a 10% tariff was introduced in 2018, some Chinese companies, such as Innovation New Material Technology, began planning production in Mexico to leverage the US-Canada-Mexico trade agreement for better market access. (Bloomberg)
- LME Copper 3M Select trades $293.50 higher at $9,636.50/mt
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Copper rebounded sharply on Thursday, gaining 3.2% to $9,641 a ton on the LME, after a significant drop fueled by a post-election dollar rally that saw copper prices fall over 4% — their steepest decline in two years. The dollar’s pullback amid emerging-market support for local currencies helped metals recover, with traders now assessing the potential impact of Trump’s second term, particularly the likelihood of toughened trade measures targeting China. Hopes are rising for stronger stimulus from Beijing, with expectations that key legislative meetings this week may signal supportive economic measures, which could offset trade-related pressures.(Bloomberg)
- CME HRC Steel last traded at $706/st, prices are unchanged from yesterday’s settle
- Nippon Steel remains optimistic that its $14.1 billion acquisition of U.S. Steel will close by year-end despite strong resistance from unions, the outgoing Biden administration, and President-elect Trump, who has pledged to block the deal. Vice Chairman Takahiro Mori expressed hope for “constructive discussions” now that the election has concluded, emphasizing the acquisition’s benefits to the U.S. economy, competitiveness with China’s steel giants, and plans for a $1.3 billion investment in U.S. Steel’s operations. With recent permissions from U.S. regulators to refile the bid, Nippon Steel is making efforts, including meeting with unions and divesting its stake in an Alabama mill to ease antitrust concerns.(Bloomberg)
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