Happy New Year! As 2025 begins, let’s dive into a quick recap of market dynamics we discussed last week. Specifically, we explored two critical concepts: contango and backwardation, and their implications for the aluminium market. What Are Contango and Backwardation? Contango occurs when the future price of a commodity is higher than its current or […]
The construction sector is where dreams are drawn in blueprints and transformed into tangible marvels that shape our cities, lives, and futures. It’s a world of towering skyscrapers touching the clouds, green buildings that breathe sustainability, and futuristic hubs connecting people and places. And in the ever-evolving construction industry, aluminium has emerged as a game-changer, […]
In an ever-evolving world, the pulse of change is constant, affecting everything from natural cycles to organizational leadership. In industries like metals and energy, leadership is not just about guiding teams—it’s about adapting and thriving in the face of constant transformation. As the demand for sustainable materials grows, the aluminium sector faces both immense challenges […]
Every year marks a celebration of technological progress in the aluminium industry, and 2024 is no exception. After all, technology now plays the most crucial role in revolutionising the aluminium industry, helping it keep pace with advancements across the worldwide industrial manufacturing sectors. This year, many groundbreaking digital solutions and state-of-the-art tools have empowered the […]
In our previous discussion, we explored the concept of theoretical contango and its construction. Let’s quickly recap and expand on this idea with a comparison between aluminium and copper. Aluminium: The Basics of Theoretical Contango: Using aluminium as an example, we started with a cash price of $2,600 per tonne. If you buy aluminium immediately, […]
You’ve heard about contango, backwardation, and flat curves before, but let’s revisit these concepts, starting with contango. At its core, contango occurs when futures prices are higher than the current (cash) price of a commodity. But how does a contango build up? To explain this, we look at the theoretical contango, a structure driven by […]
Projects serve as the backbone of progress, fuelling innovation and securing a competitive edge in ever-evolving industries. They act as catalysts for exploring emerging technologies, refining processes, and crafting solutions that meet the demands of a dynamic market. In this landscape, the aluminium packaging industry shines as a beacon of adaptability, consistently transforming to address […]
In our last discussion, we explored how a contango situation benefits aluminium producers. To recap, contango occurs when the market price for a future date is higher than the nearby or current price. For producers, this is fantastic. They can sell into the futures market at a higher price. But what does contango mean for […]
We’ve learned that futures markets can show prices for immediate delivery and prices for a future date. When the prices for a future date are higher than nearby prices, this is known as a “contango” situation. Imagine you’re a producer needing to sell into the futures market to hedge and protect your business. If you’re […]
In the world of metal trading on the London Metal Exchange (LME), understanding price structures is key. Whether it’s aluminium, copper, or other metals, futures pricing provides valuable insights for hedging and market strategy. Let’s break down the basic concepts: Flat Curve: A flat curve occurs when the price for a nearby date is the […]