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Base Metal Markets Across LME Are Showing Signs of Surplus
Every major market on the London Metal Exchange is showing signs of ample supply, as slowing economic growth undercuts demand. Spot prices for the six key metals that dominate trading on the LME are all at a discount to futures, with spreads for copper hovering near the widest on record. The market structure, known as contango, typically indicates there’s enough supply to meet near-term demand. While metal-market contangos are not unusual, their depth and persistence is a troubling signal recalling the years of sluggish growth that followed the financial crisis. In 2023, tighter monetary policy has hit ... (full story)