All eyes on China as LME copper spreads collapse

The cost of an overnight short position roll, which was US$125 (RM522.44) per tonne before the LME (pic) imposed its lending cap, is currently trading in small contango

CALM has returned to the London Metal Exchange (LME) copper market after last month’s storm, which forced the exchange to step in to protect those caught with a short position.

The LME cash premium, which rocketed to an unprecedented US$1,103.50 (RM4,610.97) per tonne prior to the intervention, was valued at just US$15.50 (RM64.78) at Tuesday’s close.