Copper Short Squeeze in New York Is Rocking Metals Markets
- Traders are rushing to secure metal and ship it to the US
- US copper trades as much as $1,200 a ton above London levels
This article is for subscribers only.
A massive dislocation between the prices for copper traded in New York and other commodity exchanges has rocked the global market for the metal and prompted a frantic dash for supplies to ship to the US.
The source of the disruption is a short squeeze that has driven up prices on the Comex exchange in recent days. The premium fetched by New York copper futures above the London Metal Exchange price has rocketed to an unprecedented level of over $1,200 per ton, compared with a typical differential of just a few dollars.