EL7.AI
CommoditiesMedium•19 August 2026•
1 min read

Copper Backwardation Collapses as LME Stocks See Largest Daily Build Since April

Key Facts

1More than 20,000 tons of copper were delivered to LME warehouses, the largest one-day build since April.
2The cash-to-three-month spread dropped from a peak of $545 to $248 a ton.

In a move reflecting an easing of supply constraints in global markets, the copper market experienced a significant shift following a week of intense price pressure. According to reports, more than 20,000 tons of copper were delivered to London Metal Exchange (LME) warehouses, marking the largest one-day inventory build since April. This sudden influx of physical metal effectively broke the supply squeeze that had gripped the London market recently.

The surge in inventories caused the cash-to-three-month backwardation spread to collapse, dropping from a peak of $545 to $248 per ton. Trafigura Group and other trading firms led the movement of metal into the exchange system to capitalize on high spot premiums, a move that significantly alleviated immediate supply concerns for market participants.

Investors are looking toward broader economic indicators for demand signals, noting that UK GDP growth was reported at 1.2% YoY on August 13, which remains a key factor for industrial metal consumption outlooks.