Sep 17

• Copper Hits New Highs as 2027 Contract Negotiations Begin: LME and Comex copper futures gained strong upside traction this week. Upstream mining disruptions and low concentrate availability have left smelters with virtually zero margin buffer, setting an aggressive tone for early 2027 benchmark contract negotiations. Demand for copper cathode, enamelled wire, and continuous-cast copper rods remains robust, particularly across Latin American power grid projects and high-efficiency transformer manufacturing hubs.

• Aluminum Extrusion and Foil Squeeze: Upstream alumina shortages from previous weeks continue to ripple down the supply chain, keeping primary aluminum prices firmly supported above $3,180/MT. Overseas packaging converters and solar mounting manufacturers are facing lengthened delivery lead times for precision cold-rolled coil and structural extrusions.

• Export Strategy Focus: With copper and aluminum spot volatility expected to intensify as Q4 approaches, exporters should implement floating surcharge models (linking spot quotes directly to LME/Comex 3-day moving averages) and secure forward ocean freight allocations to lock in margins against seasonal Q4 logistics rate hikes.