Copper price down despite tight supply
Copper prices fell on Thursday despite the tight supply.
Global exchange stocks, comprising those in LME, CME and Shanghai Futures Exchange warehouses, have fallen for the last two months.
They stood at a cumulative 232,550 tonnes at the end of October, down 30,000 tonnes since the start of 2021 and down almost 150,000 tonnes from October 2020. Shanghai stocks currently total less than 50,000 tonnes.
Copper for delivery in December fell 0.5% on the Comex market in New York, touching $4.30 per pound ($9,461 per tonne) on Thursday afternoon.
[Click here for an interactive chart of copper prices]
Copper squeeze
While futures prices are tumbling as the outlook for demand deteriorates, short-term copper contracts are once again trading at a huge premium to futures in London.
Premiums for spot contracts hit record levels last month, in a condition known as backwardation (prompt delivery metal pricier than futures) that signals spot demand is far outpacing supply.
“It is fair to say that there is some sort of storm brewing for the metals,” Malcolm Freeman, a director at brokerage Kingdom Futures, told Bloomberg.
“The key question is when will it break?”
Read more: The great copper squeeze isn’t over yet
(With files from Reuters and Bloomberg)
More News
Botswana targets rich young Americans with big, natural diamonds
The country is aiming at buyers of more expensive jewellery, while highlighting that its gems can be traced back to Botswana mines through blockchain technology.
March 15, 2025 | 02:07 pm
Barrick fined for releasing excessive cobalt into British Columbia river
The fine relates to 17 separate incidents between 2021 and 2023 at the now-closed Nickel Plate gold mine.
March 15, 2025 | 01:58 pm
{{ commodity.name }}
{{ post.title }}
{{ post.excerpt }}
{{ post.date }}
Comments