| Copper spreads on the London Metal Exchange (LME) tightened sharply last week as the market finally started reacting to the continued steady erosion of available stocks. The previous disconnect between dwindling stocks availability and a relatively loose market structure had caused much collective head-scratching in the market.
The conundrum looks as if it is now being resolved as front-month backwardation returns to levels historically associated with the current low level of stocks. A research note by Goldman Sachs, advising short position-holders to roll out of the front part of the curve, seems to have acted as a collective wake-up call...............................................Full Article: Source
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