COMEX-LME Copper Price Spread Narrows as US Influence Weaks
The recent price spread between COMEX and LME copper has narrowed, signaling a decrease in the US influence on copper prices. Specifically, the COMEX-LME copper price spread has inverted, with the COMEX copper 2610 contract falling below its LME 3M counterpart. This inversion is a clear indication that the US pull effect on copper prices has weakened.
LME copper inventories have been steadily increasing, reaching 249,225 mt on September 14, up by 6,325 mt from the previous day. As a result, nearby LME contracts have shifted to a Contango structure and widened. The continued rise in LME copper inventories is likely contributing to this shift.
The data suggests that the market is adjusting to changes in global supply and demand dynamics. However, it's essential to note that these developments are based on publicly available information and should not be considered as investment advice.