Copper extended its rally and is approaching this year’s intraday record as
short-term supply stays tight despite some easing of last week’s squeeze. LME
copper is up about 16% YTD. Traders are shipping large volumes to the US,
draining inventories elsewhere while mines struggle to meet rising demand. The
squeeze pushed the LME spot/3-month spread above $500/tonne at one point; it
narrowed but was about $156/tonne at Tuesday’s close, well above normal. LME
copper rose 0.5% to $14,415.50/tonne, nearing the Jan intraday high of
$14,527.50/tonne.