At least some of the recent inflow has come from China, where smelters have capitalized on LME copper’s spike to a record nominal high of $11,104.50 per ton in May.
China can afford to ship some units. Shanghai Futures Exchange (ShFE) stocks currently stand at 322,910 tons, down only slightly from a four-year high of almost 337,000 tons earlier in June.
The one exception to this trend remains the CME’s COMEX division, where inventory has shrunk to just 8,274 tons, the lowest since 2008.
CME shorts have little option other than to roll positions forward, prolonging a running squeeze in the US market.
Copper, copper everywhere…
Rising global exchange stocks of copper have damped bullish spirits, which is why the LME three-month price has fallen back below the $10,000-per ton level, last trading around $9,600.
The growing mountain of metal also explains the wide contango structure on…
