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. Per analyst facts, 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.

Based on data available as of August 19, 2026, specific instrument price levels are currently unavailable in the database, though the qualitative trend points to a bearish correction in spot premiums. 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.

Sources:

oilprice.com