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Copper near record highs as cash-to-3-month spread widens

Commerzbank links the unusually large cash–3-month spread to falling LME stocks and US tariff-driven pre-emptive buying.

Reported · Written up by our desk · Industrial Metals

Commerzbank’s Barbara Lambrecht said copper prices on the LME are close to record highs, alongside an unusually wide cash-to-3-month spread.

In FXStreet’s write-up of Commerzbank’s view, the widening spread is tied to falling LME stocks and pre-emptive buying in the US related to tariffs.

Lambrecht also pointed to supply risks, citing weak smelter margins and the possibility of production cuts in China and the Democratic Republic of the Congo.

Looking further ahead, FXStreet reports that longer-term demand growth and lagging mine development could lead to a future copper supply shortfall.

Latest closeCopper $6.606 ▲0.2%

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