Investor appetite has continued to rise since China returned to the market on Monday after the Golden Week holiday and the red metal’s price has been climbing steadily, reaching a high over $6,903 per tonne earlier today before retreating slightly to close $87 higher than Wednesday’s close price.
“The copper contango continued its downward path to $25 as more confident borrowing returned. Other metals had mixed fortunes with little incentive to move far from the previous close,” noted Sucden Financial.
Zinc prices followed copper’s upward trend while tightness in the market continues. The LME benchmark cash/three-month spread hit $80 per tonne backwardation today, a level last seen eleven years ago.
The cash/three-month spread has been in a backwardation since mid-September while warrants remain in tight hands, with one market player holding 90-100% of warrant holdings in...