Copper squeeze likely as stocks drop ahead of smelter supply | Reuters


Thu Feb 13, 2014 11:31am EST

LONDON, Feb 13 (Reuters) – A short, sharp squeeze could beon the cards for physical copper markets as inventories fall andhealthy demand outpaces expected new material from smelters.

The shortages are showing up in copper on the London MetalExchange (LME), which has been in backwardation for over a month- a situation in which the nearby price is higher than theforward price due to strong immediate demand.