The price of copper in London climbed close to its highest level this year, while traders try to reach any smaller stocks after multi-month haste to move Metal to the US before possible tariffs.
The reference price in London rose on Wednesday to more than a quarter maximum of almost $ 10,000 per ton. Copper stocks in the global store of the London Stock Exchange metal fell to the lowest level of 2023. years.
Truke struck retail houses and smelters that are made from metal exposure, raising prices and forcing LME to intervene the market last month by introducing rules for traders with great positions, writes financial Times.
“Mean the transmission of metals from all over the US in the United States” Copper “Currently, the most distant metal market,” Tom Story said, an analyst in Panmure Liberum.
The huge amounts of copper flowed from Europe and Asia in the United States ahead of the possible introduction of import duties by Trump administration to that metal, which is widely used in sectors such as energy, technology and traffic. Competition for scarce European and Asian stocks increased, and large retail houses such as Mercury and Vitoles try to expand their business with base metals.
Given the tightening of the market, LME changed its rules last month, making the requirements for lending to traders with very large positions, to solve some customers who want to quickly provide large quantities even while stocks are low, seebiz.
“It is pre-war to say that the market is in the crisis, but the market is at a very interesting point,” said the alastair munro base metale strategy from Morex.
The manijal purchase meant that typical dynamics of the terminal market market – where prices usually more than a spot price – reversed in the reversal known as “backwards”. This meant that the spot price last week rose to almost $ 400 per tonne more than a quarterly term price, which is the largest gap from 2021. years.
