The LME 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.
The three-month copper price traded at $10,052 per tonne at the open on Wednesday, down from Tuesday’s close at $10,149.50 per tonne. The price had dipped below $10,000 per tonne in Tuesday’s session before rebounding.
“The latest spike up in base metals prices seems to have run its course for now and some intervention by the LME and reports that China said it would work to lower coal/energy prices may have prompted profit-taking,” said William Adams, Fastmarkets head of research base metals and battery materials.
Backwardations in LME copper spreads have also eased but remain at wide levels. The cash/November spread had touched a backwardation of more than $1,010 per tonne on Tuesday before narrowing to a $100-per-tonne backwardation on Wednesday.
Copper stocks trickled back into some LME sheds, with 1,275 tonnes rewarranted in Busan, while there were 650 tonnes cancelled in Singapore.
Elsewhere, zinc was the outperformer of the LME base metals, up slightly to $3,577.50 per tonne from $3,508 per tonne Tuesday.
- The German producer price index is due to be released later in the day.