I just reviewed the behavior of these metals these days and things are quite interesting. Last Monday, we saw copper prices drop about 1.3% at the open, while aluminum rose 0.9%. Nothing extraordinary at first glance, but what really catches the eye is what's happening underneath.

The spread between the spot and forward contracts for aluminum on the London Metal Exchange widened by 37% compared to the previous Friday, reaching $91.50 per ton. That’s the highest level since 2007, which says a lot about the current pressure. Basically, buyers are seeking metal for immediate delivery, suggesting they are looking for alternative supply sources due to market uncertainty.

All of this adds to six weeks of conflict in the Middle East, and now Trump’s statements about the Strait of Hormuz have increased volatility. The metals market is quite chaotic right now. Copper prices and other commodities are reflecting all this geopolitical uncertainty. Something to watch if we operate in these markets.