LIVE FUTURES REPORT 01/06: LME copper price nears $5,500; US construction spending lends support

The three-month copper price on the London Metal Exchange was higher at the close of trading on Monday June 1, needing only a further slight push to rise above $5,500 per tonne – a level it has not breached since March 11 – while a smaller-than-expected fall in US monthly construction spending also supported the base-metals complex.

Copper’s underlying price on the LME closed at $5,484 per tonne on Monday afternoon, its highest closing price since March 11, while turnover was at its highest since April 21 at more than 19,000 lots exchanged by the 5pm close.
LME copper stocks remained on a downtrend amid continued buying interest from Asian consumers, but arbitrage opportunities in copper continued to shrink with domestic Shanghai copper premiums declining.

Meanwhile, total on-warrant LME copper stocks were now at 186,185 tonnes, down from more than 200,000 tonnes on-warrant last month. LME data also showed two dominant warrant holders at 50-79% of warrant...


Hassan Butt

June 01, 2020

17:15 GMT