The London Copper Market Is in a Historic Flash Squeeze
- Available LME inventories have dropped 88% this month
- LME copper futures are closing in on an all-time high
Photographer: Dado Galdieri/Bloomberg
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The London copper market remains in a historic squeeze, as a critical shortfall in available inventories drives prices to near-record levels and leaves buyers paying huge premiums for spot metal.
Copper tracked by London Metal Exchange warehouses that’s not already earmarked for withdrawal was near the lowest since the 1970s on Tuesday. The dramatic 88% drop in available stockpiles this month has been driven by a steady flow of orders to take metal out of European depots. And while the record spot premiums should typically start attracting metal back into the warehouse network, there’s little sign of that happening so far.