LME copper backwardation narrows after 20,000 tons land in exchange warehouses
AI Market Summary
A 20,000+ ton delivery into LME warehouses relieved an acute copper squeeze, sharply compressing the cash-to-3M backwardation and reducing near-term tightness signals. Unresolved U.S. refined copper tariff timing continues to influence the COMEX-LME spread, sustaining policy-driven uncertainty. Despite the easing in London, structural supply risks (Chile cuts, smelter outages, Congo export ban) and softening Chinese demand signals keep the market finely balanced short term.
Impact level
● Medium
Affected assets
NCCO724COPPER2USD/USDT-1.04%
AI Insight · NCCO724COPPER2USD/USDTAI Insight
● Neutral
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The LME copper cash premium narrowed sharply after about 20,000 tons arrived, pushing the cash-to-three-month spread from $545 a ton on Monday to $248. A U.S. Commerce Department recommendation on refined copper duties that was due June 30 has not been published, leaving a proposed 15% tariff for January 2027, rising to 30% in 2028, unresolved. Despite a rebound in inventories last week, on-warrant stock remains down roughly 75% from its mid-April peak.
