Base Metal Markets Across LME Are Showing Signs of Surplus
- All major metals markets on the bourse are trading in contango
- LME futures pulled back across the board on Wednesday
Copper futures on the LME fell 1.1% to $8,355 a ton by 2:55 p.m. in London.
Photographer: Bartek Sadowski/BloombergThis article is for subscribers only.
Every major market on the London Metal Exchange is showing signs of ample supply, as slowing economic growth undercuts demand.
Spot prices for the six key metals that dominate trading on the LME are all at a discount to futures, with spreads for copper hovering near the widest on record. The market structure, known as contango, typically indicates there’s enough supply to meet near-term demand.