The canary in the coal mine.
- The copper market's extreme contango, not seen since 1994, indicates accumulating inventories and faltering demand, especially from a weakening Chinese property market.
- Amidst global manufacturing slowdowns and concerns of recessions in developed economies, the copper market hints at an uncertain future, with risks leaning towards a decline in price.
- Long-term projections, however, remain positive for copper due to the decarbonization drive, with industry experts predicting elevated prices and increased demand as the decade progresses.
The copper market is in a state of extreme contango—a state of the futures curve where futures contracts trade at a premium to the spot price and signal weak prompt demand.
The cash to three-month contango on the London Metals Exchange (LME) jumped at the end of September to the highest since at least 1994 in data compiled by Bloomberg, as inventories pile up while demand seems to falter. . . .
Source Article (oilprice.com)
The canary in the coal mine.
>- The copper market's extreme contango, not seen since 1994, indicates accumulating inventories and faltering demand, especially from a weakening Chinese property market.
- Amidst global manufacturing slowdowns and concerns of recessions in developed economies, the copper market hints at an uncertain future, with risks leaning towards a decline in price.
- Long-term projections, however, remain positive for copper due to the decarbonization drive, with industry experts predicting elevated prices and increased demand as the decade progresses.
>The copper market is in a state of extreme contango—a state of the futures curve where futures contracts trade at a premium to the spot price and signal weak prompt demand.
>The cash to three-month contango on the London Metals Exchange (LME) jumped at the end of September to the highest since at least 1994 in data compiled by Bloomberg, as inventories pile up while demand seems to falter.
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[Source Article](https://oilprice.com/Metals/Commodities/Coppers-Price-Curve-Hasnt-Looked-Like-This-In-Decades.html)
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