LME copper hit by flash squeeze as cash-to-three-month premium jumps to $545 a ton
AI Market Summary
LME copper is experiencing a sharp cash-market squeeze as low exchange inventories collide with concentrated long positions, driving extreme backwardation and elevated tom-next financing costs. Although fresh warehouse deliveries have partially eased spreads, the episode highlights ongoing tightness and location-driven dislocations versus CME, where U.S. premiums remain large amid tariff uncertainty. Near-term liquidity and funding stress for shorts may persist, keeping volatility elevated.
Impact level
● High
Affected assets
NCCO724COPPER2USD/USDT+1.61%
AI Insight · NCCO724COPPER2USD/USDTAI Insight
▲ Bullish
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A sharp squeeze hit LME copper futures, pushing the cash-to-three-month premium up to $545 per metric ton on Monday, the widest since 2021, while the cash price reached a record $14,912 per ton. The next day, the “tom-next” roll cost surged to $110 per ton. Data showed a single long controlled 30% to 40% of warranted stocks, while two longs together held 50% to 80%, leaving total long positions above all available LME inventories. At the same time, the CME copper premium also climbed to $430 per ton.
