In this blog of Hedging with Jorge, we step into the real-world journey of acquiring aluminium and the often-overlooked costs that come with taking delivery. From LME warrants to consolidation charges, Jorge breaks down the concept of the equivalent premium, a cost that begins accruing the moment you decide to bring the metal home. Suppose […]
In Jorge’s blog, we’re diving into the third crucial role of the London Metal Exchange (LME): delivery. If you’ve ever wondered what happens if you don’t close your futures position on time, this one’s for you. Let’s start with a simple scenario. Suppose you’ve taken a long position in the aluminium futures market, expecting prices […]
We, all the members of AL Circle, wish you a Happy World Earth Day. The Earth has been around for 4.5 billion years. Earth Day? Just 55 as of April 22, 2025. This year’s theme, “Our Power, Our Planet,” unites people in over 19+ countries to raise awareness of environmental issues and spark action to […]
The U.S. aluminium industry is at a breaking point – and that’s not an overstatement. With new tariffs now extending to Canada under Section 232, the rules of the game have changed. What was once considered a “domestic” flow of aluminium from our northern neighbour has been reclassified. The result? A 3-million-tonne gap in supply, […]
Aluminium is often hailed as the most recyclable metal in the world and for good reason. With increasing global concerns about sustainability, waste reduction and resource conservation, aluminium has emerged as a true champion of circular economy practices. But what makes this lightweight metal so unique in terms of recyclability? 100% recyclable with zero degradation […]
In the previous blog, we explored the LME’s primary function, i.e., price discovery. Today, we shift our focus to its second essential role, hedging. The LME isn’t merely a platform for observing metal prices, it empowers participants to actively manage price risks through strategic trading. Hedging involves establishing long or short positions using futures and […]
The London Metal Exchange (LME), established 147 years ago, stands as a cornerstone in the global metals market. Its longevity and reputation have cemented its status as a trusted institution for price discovery and risk management. Price discovery is the process through which market prices are determined by the interactions of supply and demand. At […]
Trump tariffs have taken the aluminium industry under a complete shock. From the imposition of new tariffs to counter-tariffs to the latest news of South Africa’s aluminium industry breathing a sigh of relief, a lot has happened throughout the week. On the other hand, slightly shifting from the tariff tension, India is continuing to dominate […]
Aluminium has swiftly become a material of choice in the consumer electronics industry. From smartphones and laptops to tablets and wearables, manufacturers increasingly turn to aluminium to enhance function and form. Its unique properties are redefining modern tech’s design, durability and sustainability standards. Why aluminium? Aluminium’s growing popularity in electronics stems from its lightweight nature […]
In the world of aluminium trading, understanding your strategic choices as a speculator is crucial. One of the key tools available to traders is the put option, a financial instrument that offers the right to sell, but not the obligation. In this blog of “Hedging with Jorge,” we delve into the fundamental dynamics of a […]