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Copper Heads Toward Record High on LME as Supply Tensions Build

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Copper Heads Toward Record High on LME as Supply Tensions Build Copper extended a seven-week rally to head toward a record, with a key price spread on the London Metal Exchange widening to unusual levels in a clear sign of rising competition for short-term supply. The metal’s spot price traded as much as $478 a ton above contracts for delivery in three months, the biggest gap since a major squeeze in 2021. The backwardation structure is a hallmark of near-term tightness.

Copper Heads Toward Record High on LME as Supply Tensions Build Copper extended a seven-week rally to head toward a record, with a key price spread on the London Metal Exchange widening to unusual levels in a clear sign of rising competition for short-term supply. The metal’s spot price traded as much as $478 a ton above contracts for delivery in three months, the biggest gap since a major squeeze in 2021. The backwardation structure is a hallmark of near-term tightness.
LME (ORG) the London Metal Exchange (ORG)
Originally published by Bloomberg Markets Read original →