Did you know that the World Economic Forum estimates global aluminium demand will rise by 40% by 2030? It is no secret that aluminium is becoming an unstoppable metal across industries. From transportation and construction to pharmaceutical and energy, aluminium is a formidable material. Over the years, aluminium has become irreplaceable in major renewable energy […]
What does, as a reader, strike when you read or hear aluminium and steel? They are just metals, right? However, the debate begins when we dig deeper to understand the metals and the qualities they offer. In the current scenario, sustainability is paramount, striving for a greener future. Both steel and aluminium play a crucial […]
So far, we’ve covered borrowing and are now getting into lending. Remember this simple rule: you’re lending when you sell the nearby contract and buy the forward one. And when you buy the nearby and sell the forward, that’s borrowing. Example of Lending Let’s look at an example. Suppose I’m long in March, but I […]
Aluminium plays a crucial role in the green energy transition, serving as a key material in energy generation, transmission, and storage technologies. In 2025, energy efficiency will no longer be a buzzword companies use to greenwash their products. As time progresses, mindful energy consumption is becoming a way of life. However, cautious energy usage alone […]
As we dive into another week, let’s continue our discussion on carry trades. So far, we’ve explored the borrowing side in detail, but now it’s time to shine the spotlight on lending, the second integral part of this family. To recap, borrowing in carry trades involves buying a futures contract for the nearest date while […]
It’s time to shake off the old and ring in the new year, quite literally! With fireworks lighting up the sky, dragon dances taking over the streets and family feasts that could put any buffet to shame, Chinese New Year or Lunar New Year or Spring Festival is all about celebrating fresh starts and good […]
In our last discussion, we explored the concept of lending and walked through an example of selling March and buying April. This time, let’s dive into what happens when the market is in contango, a situation where prices for future contracts are higher than nearby prices. What is Contango? Simply put, contango occurs when the […]
A very Happy Republic Day to everyone! Team AL Circle takes immense pride in celebrating the spirit of our great nation. Let’s honour the values of freedom, unity, and progress that our Republic stands for and continue striving towards a sustainable and innovative future. Together, let’s build a brighter and sustainable tomorrow. Jai Hind! As […]
So, what happens when you borrow in backwardation? Well, the rule is simple—you lose money. Why? Because in a backwardation curve, the nearby price is higher than the future price. That’s just how the market moves! Let’s break it down: If you borrow to postpone a short, say from April to May, April’s price is […]
In our previous discussion, we explored the concept of borrowing carry trades to anticipate long positions. Let’s dive deeper into how borrowing works in a contango market and why it often leads to profit. Borrowing and Long Positions in Contango Imagine this scenario: we’re holding a long position for April but need to shift it […]