Copper Price Distortion Sparks 'New Age of Arbitrage'

Copper availability is being distorted by regional trade shifts rather than absolute scarcity. According to Andy Home, China's buying is rapidly drawing down London Metal Exchange stocks while metal remains tied up elsewhere.

This 'new age of arbitrage' could create distinct pricing across the LME, Shanghai Futures Exchange, and CME based on regional differentials.

Rebuilding copper smelting and processing capacity after decades of offshoring to China will demand huge power infrastructure. A single new US smelter can consume electricity comparable to a city the size of Boston.