Copper Prices Soar as LME Metal Exits Trigger Buying

Copper prices rose on Monday as metal earmarked to exit the London Metal Exchange triggered buying. The cancellations are mostly in LME registered warehouses in the US and Asia, where traders have been taking copper since President Donald Trump mooted import tariffs in February last year.

The cancellations total 240,250 tons, or about 50% of total stocks on the LME. Comex copper stocks stand at record highs of 673,836 metric tons, but most of the cancelled metal had been delivered last week against short positions that were maturing.

As a result, traders expect to see premiums for nearby contracts rise after falling last week when the copper was delivered. The lower US currency also reinforced positive sentiment for dollar-priced industrial metals like copper.