LIVE FUTURES REPORT 07/06: LME copper surges to 4-year high amid mixed base metals complex

Copper prices on the London Metal Exchange continued to lead the base metals complex higher at the close of trading on Thursday June 7, climbing 1.5% over the day to finish above $7,300 per tonne for the first time since January 2014.

The red metal’s price has risen more than 7% in June, with increased uncertainty surrounding labor negotiations at BHP Billiton’s Escondida mine in Chile, the world’s largest copper mine, contributing to the surge in prices.  “Supply from major producer [Escondida] could be hampered because striking risk remains high as union demands are unlikely to be accepted, according to Shanghai-based analysis,” SP Angel analyst John Meyer said.  “With global tensions diminishing and gold prices stagnating, copper has become the most expensive relative to gold this year, fueling bullish signals on global growth,” Meyer added. Pressure from a dominant long position holder of 40-49% of LME warrant holdings, as well as two positions in warrant holdings...


Hassan Butt

June 07, 2018

18:05 GMT