The significant decline in the copper stocks available in the LME is also having an impact on the copper market: the term curve at the front end is in a massive backwardation; The price counted per ton of copper rose again above $ 10,000 yesterday, carrying the premium in the contract at 380 $, its highest level from the 2021 record, says Commerzbank raw material analyst, Barbara Lambrecht.
The copper boom in China could continue
“Unlike the aluminum market, however, the new measures of the LME do not seem to have any effect here, since it is probably not the individual market participants who are maintaining high positions, but the increase in the price to cash is related to the current wave of purchases in the US. UU. Due to the threat of US tariffs.”
“In addition to this short -term shortage in the market, the issue of long -term supply continues to emerge: reports on possible agreements with negative processing rates for copper founders have caused concern about it.”
“However, market sources now say that Chinese founders are entering negotiations for longer -term contracts with at least positively positive processing rates. This is reliefing about the concerns that the copper boom in China could reach a fast ending.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
