A massive backwardation on copper forward price spreads on the London Metal Exchange has collapsed after market tightness was eased by a delivery of 44,950 tonnes of metal into exchange sheds, Fastmarkets heard on Friday November 2.
On-warrant LME warehouse stocks were up by 78% on Friday to 102,600 tonnes. Thursday's 57,000 tonnes was the lowest inventory level since August 2005.The delivery was the largest single-day inflow of copper into LME sheds since April 7, 1989, when 48,000 tonnes were delivered in.It was also the largest movement of copper stock on the LME since February 2, 2004, when 45,075 tonnes were taken off the exchange.LME warehouse stock movements are reported to the market two days after they happen. The LME's...