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Trafigura Played Key Role in Draining LME Copper Inventories

  • Available copper inventories hit the lowest since 1974
  • LME made rule changes Tuesday to ensure “market orderliness”
Updated on

Trafigura Group withdrew a significant proportion of copper that’s been pulled from London Metal Exchange warehouses, contributing to wild swings in prices, according to people familiar with the matter.

The drawdown has made the trading house the talk of the copper market, helping to drive available stocks to the lowest since 1974 and pushing a key spread to the highest on record. It’s also helped to spur outright copper prices higher, with benchmark futures up about 13% since the start of the month and approaching record highs set in May.