Copper: LME stock jump eases supply squeeze – ING
ING’s commodities team highlights that Copper prices on the LME have retreated sharply, falling below $14,000/t as a significant increase in on-warrant inventories eases the previous supply squeeze.
ING's commodities team reports a significant decrease in Copper prices on the LME, falling below $14,000/t as a sharp increase in on-warrant inventories eases a long-standing supply squeeze. The LME copper prices dipped below $14,000/t yesterday, marking the steepest decline since July 23, as fresh deliveries into LME warehouses alleviated a prolonged supply shortage.
On-warrant copper inventories surged by 20,025 tonnes, the highest daily increase in over a month, adding to a six-day streak of gains totaling 123,100 tonnes. This rise in stocks helped to relieve tightness following strong shipments to the US, fueled by tariff-related arbitrage opportunities. Consequently, the LME cash/3M copper spread narrowed to $248/t, and the tom-next spread also declined, ending a two-week period of increases despite higher copper prices.
The latest COTR data showed speculators trimming their net long copper positions by 6,340 lots to 53,914 lots, signaling a moderation in bullish sentiment for the coming days and weeks.
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