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Copper tightness eases as LME inventories rise
ING says the cash-to-three-month spread narrowed to a backwardation of $176/t from as much as $545/t, but tight supply at the front of the curve keeps prices vulnerable to renewed inflows.
INGs commodities team, led by Ewa Manthey and Warren Patterson, said copper tightness has eased slightly after LME inventories rose by more than 55kt over two sessions.
They pointed to a step up in metal added to available stocks, with more than 35kt added on the latest day following an increase of over 20kt in the prior session, which narrowed the cash-to-three-month spread to a backwardation of $176/t from as much as $545/t on Monday.
Despite the improvement in the spread, ING said copper remains vulnerable, after months of inventory outflows that were supported by expectations of tariffs and tight physical supply.
The team attributed part of the outflows to metal being diverted to the US ahead of expected tariffs, adding that further inventory inflows could ease near-term pressure and raise volatility even if the market stays broadly supported by tight physical availability.
Latest closeCopper $6.606 ▲0.2%