LME copper spreads ease and SHFE's tighten on Qingdao probe

The backwardation in the cash-to-three-month spread has dropped from $100 to $50 in less than a week on the London Metal Exchange as fears mount about a crackdown on inventory financing in China.

Following the probe into collateral-backed credit fraud in the Chinese port of Qingdao, there is growing speculation that banks may raise risk premiums or pull lending altogether to smaller companies...


Mark Burton

June 04, 2014

16:16 GMT