LME front-month copper spread surges to $370 a ton in supply squeeze
The one-month premium reached its widest level since the 2021 squeeze, signaling acute demand for immediately available metal in the London market.
Fact Check
The claim that the LME front-month copper spread surged to $370/ton, the widest one-month spread since the 2021 squeeze, is directly corroborated by MINING.COM and NAI 500, both reporting the August-over-September premium of $370/t as a five-year/2021 high, alongside a $434/t cash-to-three-month spread and 204,975-tonne stockpiles. The figures match the originating Kobeissi Letter post exactly, and the 'immediately available metal' framing aligns with the reported warehouse bidding war and backwardation.
Summary
A sharp tightening in the copper market pushed the London Metal Exchange's front-month spread to a $370-per-ton premium on Friday, the widest one-month spread since the 2021 supply squeeze. The move indicates traders are willing to pay an unusually large premium for copper that can be delivered in the near term, a classic sign of immediate supply stress in the physical market.
Terms & Concepts
- LME: London Metal Exchange, a major metals marketplace.
- front-month spread: Price gap between the nearest contract months.
- supply squeeze: Shortage that sharply raises near-term prices.