Copper is referred to as “Dr. Copper” in financial markets because it’s said to have a “Ph.D. in economics.” So what is the lesson being taught by the recent surge in copper prices? Recent price increases have put copper near its all-time highs set in 2024.
Bloomberg’s Mark Burton reports:
Copper surged toward record highs and price spreads tightened dramatically in London, with holders of short positions coming under pressure while bullish investors bet on looming shortages.
Benchmark three-month prices rallied more than 3% to trade above $10,800 a ton on the London Metal Exchange, recouping losses that followed US President Donald Trump’s threats of stiffer China tariffs on Friday.
The move coincided with an even greater surge in spot prices on the LME, with the market moving into a structure known as backwardation that’s common during periods of supply stress.
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