Copper short squeeze continues as CMOC and speculation Trafigura is also caught out
- LME copper is trading at near $10,500/t following a major move higher, led by speculative positioning on COMEX.
- The US exchange, which is more speculative by nature than LME which is preferred by end users, saw spreads blow out to over $1000/t premiums.
- There have been numerous reports of major trading houses suffering margin calls from short positions.
- China’s CMOC, which owns the IXM trading group, filed a report to the Shanghai Stock Exchange yesterday stating its positions were ‘completely controllable’ and its trades were ‘100% hedged to reduce price risks.’
- Reuters reported on Wednesday that IXM and Trafigura were sourcing physical copper to deliver into CME to cover short positions.
- The positions reflect expectations that current copper prices have moved ahead of current demand requirements, with China buying muted.
- Supply disruptions have limited concentrate availability, seeing smelters rush to secure available feedstock to keep their operations running, with some operating at a loss.
- Traders expect redirected shipments into the US to take some pressure of current prices, although this could take up to two weeks.
- Trading volumes in base metals have seen huge spikes this week, with LME contracts hitting all time highs in liquidity terms.
- Speculators are wagering on base metals alongside hopes of lower interest rate environments and improved PMI data.
- Russian sanctions have also fuelled concerns over metal shortages.
- Copper hedge fund positioning is reaching highest levels since January 2018.
- Shanghai speculators are also taking part, with futures trading volumes setting record highs in April.
- ETFs are seeing major inflows as retail investors flock to gain exposure to the recent rally.
- Forums
- ASX - By Stock
- AIS
- Copper news
Copper news, page-1111
-
- There are more pages in this discussion • 299 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add AIS (ASX) to my watchlist
|
|||||
Last
16.5¢ |
Change
0.000(0.00%) |
Mkt cap ! $159.6M |
Open | High | Low | Value | Volume |
16.5¢ | 16.5¢ | 15.5¢ | $225.4K | 1.397M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
6 | 324550 | 16.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
16.5¢ | 46465 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
6 | 324550 | 0.160 |
11 | 671839 | 0.155 |
17 | 1200058 | 0.150 |
6 | 737585 | 0.145 |
9 | 2204800 | 0.140 |
Price($) | Vol. | No. |
---|---|---|
0.165 | 46465 | 2 |
0.170 | 211572 | 5 |
0.175 | 295313 | 9 |
0.180 | 668704 | 14 |
0.185 | 572226 | 10 |
Last trade - 16.10pm 12/09/2024 (20 minute delay) ? |
Featured News
NEWS
Biotech innovator secures $5.5M R&D tax incentive refund – major boost for cutting-edge programs
NEWS
Exceptional lithium assays uncovered at Falcon Lake – expanding mineralisation, big potential ahead
AIS (ASX) Chart |