High prices on the London Metal Exchange and record-high backwardations for copper's contracts put off spot buyers in both European and Asian markets in the week ended October 19, while in the United States markets were steady with 2022 contract negotiations ongoing.
European and Southeast Asian zinc premiums have risen on tight supply, though other regions, as well as the lead market, were quiet in the week to Tuesday October 19 amid high prices on the London Metal Exchange.
The London Metal Exchange three-month copper price traded slightly lower during morning trading on Wednesday October 20 following the exchange’s amendments designed to maintain order in the copper market the previous day.
Aluminium premiums in Asia were stable this week following the conclusion of quarterly negotiations, while low availability of metal kept rates in the United States steady, but a growing backwardation in London Metal Exchange spreads ignited a downswing in Europe and Brazil.
The three-month copper contract is trading near record highs on the London Metal Exchange, cash prices are rising even faster, and inventories are descending toward zero. Try running a hedge book in those conditions.