Reported 4 months ago
The historic squeeze in New York copper futures is easing as the key price spread between July and September contracts returns to normal levels, offering relief to traders facing significant losses on short positions. The spread had spiked to a record premium in mid-May, causing financial investors and physical copper traders to incur mark-to-market losses. While the balance of power has shifted with July contracts now trading at a discount to futures, analysts warn of potential further price volatility and squeezes due to ongoing global shortages. Copper prices in New York, London, and Shanghai have dropped from record highs following the squeeze, with prices currently down about 6% from the peak on May 20.
Source: YAHOO