Vedanta, Suzlon, Hind Copper and other stocks to watch as copper prices surpass $11,000 per tonne to break March 2022 record

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Futures contracts on the London Metal Exchange jumped 4.1% to $11,104.50 per tonne, surpassing the previous record set in March 2022. The global copper world is being rocked by a massive squeeze in the New York market , where prices are reaching unprecedented levels. high last week.

This short squeeze pushed Comex prices to an unprecedented premium over the LME and sparked a rush to reroute metals supplies to the United States.

“The Comex short squeeze is redirecting copper to the United States and reducing supply in other regions,” Gong Ming, an analyst at Jinrui Futures Co., said by telephone. “The Chinese market is expected to see its stocks soon withdraw with an increase in exports. »

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A chorus of investors, traders and mining executives have warned of a looming multi-year deficit, saying it could send prices soaring. Demand for the metal has increased due to its role in the energy transition, while supply from new mines appears limited.

Copper is up more than a quarter since the start of this year. A sudden tightening of ore supplies has raised the possibility that the global market could face a long-promised deficit sooner than expected if smelters respond by cutting production of the refined metal.

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A series of setbacks at major mines in recent months has prompted a flurry of buying by investors, even as many in the physical trade have warned the market is ahead of reality. Demand remains relatively tepid, particularly in China, the main buyer, where inventory levels remain high.

However, supply disruptions and sustained price increases have emboldened copper buyers while drawing financial investors into the market in a bid to bet on further gains. Copper was up 3.5% at $11,040 a tonne as of 10:23 a.m. Shanghai time.