London: A historic squeeze in the copper market has begun to ease as traders move more metal into warehouses registered with the London Metal Exchange (LME), helping relieve tightness in immediately available supplies.
The increase in deliveries comes after a period of strong demand and limited spot availability pushed copper market conditions to unusually tight levels. Traders had been closely watching inventories and the gap between nearby and longer-dated contracts for signs of stress in the physical market.
The arrival of additional copper at LME-approved warehouses could reduce pressure on consumers and traders seeking prompt supplies. It may also ease some of the extreme price and spread movements that emerged during the squeeze.
Copper remains one of the world’s most closely watched industrial metals because of its importance to power grids, electric vehicles, renewable energy, construction and manufacturing. Expectations of rising demand from the global energy transition have kept the market in focus, while mine disruptions and supply constraints have added to concerns about future availability.
The latest deliveries suggest that some of the immediate supply pressure is easing, although traders will continue to monitor LME inventories, global mine output and demand from major consuming markets.