Copper inventories for sale on the London Metal Exchange plunged to the lowest since 1974, in an unexpected escalation of a drop on global supplies that drove prices back above the $10,000 a ton mark.
- Copper tracked by LME warehouses that are not allocated for withdrawal has plummeted 89% this month after an increase in orders for metal from warehouses in Europe.
- Stockpiles have also been dropping fast on rival stock exchanges and in private storage, and LME spreads dropped to historic levels of backwardation, with almost due contracts trading at record premiums.
- The falling global stockpiles and resilient demand for copper are positioned in contrast to the increasing concerns over the macroeconomic outlook and the risk that power shortages and inflation could hamper the world’s strong growth trend.
Copper increased nearly 2.6% on the LME to $10,244 a ton. The metal is set for a weekly gain of 9% that could be the biggest starting 2016.
Copper up +0.09%