Copper Prices Trade At Record High

last updated on

Copper Prices Trade At Record High

Copper Prices Trade At Record High On Short Squeeze

Copper prices have reached new record highs as the Monday session unfolds. From the looks of it, the upside in Copper prices seems like a short squeeze, as a lot of short sellers are being taken out!

Additionally, a lot of factors hint at a tight copper market this year, which has led to higher demand for red metal.

3-Month Copper Futures Trade At $10848.50

3-month Copper futures are trading at $10848.50 on the London Metal Exchange with a +0.8% change for the day. As for the 1-month copper futures, they are seen trading at $5.1370/pound with a +0.9% change for the day.

The prices of Copper have gone up recently on optimism that the upcoming rate cuts will lead to improved economic activity. At the same time, the Copper demand in China is also expected to rise as the country keeps announcing stimulus measures.

Another factor that is in favor of Copper is tighter suppliers as the West has imposed sanctions on metal exports from Russia. At the same time, refiner cuts were witnessed, which also favored an upside in Copper prices.

However, the biggest boost to the copper price was due to a short squeeze seen on the Comex Exchange. A lot of big & long-term copper contracts were bought, which ended up squeezing any short positions.

After the squeeze, the US copper futures turned higher as the investors are now facing to secure the copper suppliers via the July contract.

Investors are also buying copper contracts under the assumption that reduced mining output will lead to an imbalance in the copper market during the next few years.

In China, the government continues to announce stimulus measures one after another, which automatically means more copper imports.

The country has also removed some of the restrictions on the property sector, which will also boost copper prices.

Trending Stories