[Financial Media Editor] COMEX copper prices have risen rapidly recentlyonlinecasinonodeposit, the highest increase in the 2007 contract reached 10onlinecasinonodeposit.2%onlinecasinonodeposit, hit a record high. Inventories in North America are extremely low, and long funds are squeezed strongly. Four solutions are considered for global refined copper inventories, but deliverable supplies are limited. In the short term, the market may continue until there is a significant reduction of positions. The probability of a similar market for Lun Copper and Shanghai Copper is low.
[COMEX copper prices rose sharply last week, with the largest increase in the week of the 07 contract reaching 10%onlinecasinonodeposit.2%, hitting a historical peak of US$5.128/lb] Copper prices have performed exceptionally strongly in the near term, especially COMEX copper prices. According to market data, as of May 15, the largest increase in the week for the COMEX copper 07 contract reached 10.2%, setting a record high of US$5.128/lb. At the same time, London copper prices were relatively stable, with an increase of only 2% during the week. This led to a rapid expansion of the price difference between U.S. copper and London copper. The extreme price difference even exceeded the 2006 level, reaching US$1100/ton, setting a new record. The squeezing behavior of long funds was the main reason for the sharp rise in the price of the COMEX copper 07 contract. The flow of funds appears to have begun to simmer last week. Within a week, the price curve of COMEX copper quickly changed from Contango to Backwardation, and the slope of the curve was also rising. According to open position data, open positions on the 07 contract increased to 178,000 lots, compared with only about 70,000 lots at the beginning of April. The COT index is currently about 87%, which still has some room to compare with the extremely bullish level in history, indicating that the market may continue for some time. The decline in copper inventories and the limited availability of deliverable supplies are the direct reasons for the rise in copper prices. Currently, North American COMEX copper inventories are at historically low levels and have been hovering at low levels since last year. As overall refined copper demand in the United States remained strong, inventories fell further to 21,000 tons, the lowest level in the same period in six years. In addition, the world's top trading companies 'expectations for higher forward prices and the hoarding of some refined copper are also factors leading to the accelerated rate of overseas inventory removal. Although there are multiple solutions proposed in the market, there are currently about 178,000 lots of positions and about 2 million tons of refined copper, which is obviously less than 20% of all possible delivery sources. Therefore, in the short term, the strong trend in copper prices may continue until the market significantly lightens its positions. Despite this, due to the current shortage of supply and demand for copper mines, the macro level may provide more room for copper prices to rise, but the possibility of long funds promoting copper and Shanghai copper prices cannot be completely ruled out.
