The benchmark copper on the London Metal Exchange (LME) fell 0.2% at midday today to $8,035 per metric ton. Prices for this metal, widely used in the energy and construction sectors, previously fell to $7,956.5 a ton, the lowest level since May 26.
Copper stocks in LME registered warehouses have risen more than 200% since mid-July to 168,600 tonnes and are at their highest since May last year.
A Europe-based trader said the physical copper market was contained. “I wouldn’t even be surprised if more copper was delivered on the LME.”
This, he said, despite the closure of Boliden’s Ronnskar smelter in June, which would normally have meant consumers looking for copper in the physical market.
Expectations of new copper deliveries to LME warehouses have caused the discount of the spot copper contract to the three-month contract to reach its highest level in 21 years yesterday, at $75 per tonne. Then it stood at $71.