LME imposes measures to cool copper market

The London Metal Exchange has imposed a series of temporary measures to maintain an orderly copper market after wild outright and spread price moves and dwindling inventories in recent days, the exchange said.

In a notice to members, the LME said its Special Committee had been monitoring the ongoing tightness in the copper market, with exchange inventories falling and nearby carries tightening.
The result was it had decided to amend its lending rules, impose a limit on the backwardation for tom-next contracts and introduce a deferred delivery mechanism for certain contracts, it added.

The first measure - designed to incentivize keeping or bringing metal on-warrant in...

Published

Andrea Hotter

October 19, 2021

20:12 GMT

New York