Copper available in LME approved warehouses drops to lowest level since October 2021
Copper availability in London Metal Exchange (LME) approved warehouses has reached its lowest level since October 2021, with large amounts of inventory earmarked for removal from the LME system. Of the stock, 62.5% or 50,275 metric tons have been set aside for delivery in the coming weeks.
High cancellations of warrants indicate potential supply concerns
LME stock data reveals a fresh cancellation of 19,200 metric tons in warrants, mainly in New Orleans, where cancelled warrants now constitute 95% of the total stock. Large warrant cancellations can lead to concerns about LME supplies, potentially affecting price differences between contracts along the maturity curve. Typically, when concerns about LME supplies arise, contracts with short maturities attract a premium.
Benchmark LME copper prices increase
As of 0935 GMT, benchmark LME copper prices rose by 0.8% to $8,676 per metric ton (used in power and construction), after reaching the highest level since May 2 at $8,711.5.