Post by
nofluff on May 20, 2024 12:21pm
Copper price
So they announce 100 thousand tonnes is diverted to comex. That put a stall on comex price but jumped lme to equal comex as that is copper not going to lme.
That should stabilize price for a bit. I imagine price will climb slowly for a bit, then faster as physical supply shrinks.
Insitiu metal is gaining some value.
Good to b in copper.
Nf
Comment by
nofluff on May 20, 2024 1:03pm
So they might break even on this physical delivery. But they still have about 800 thousand tonnes on short. That could cost them billions. They can pay the big premium to roll ahead but likely just cost more going forward. They will be trying to buy physical but also buying paper. Nf
Comment by
nofluff on May 20, 2024 1:18pm
I ran the math. After the morning short long report. At minimum, short s could cover for 1 trillion u.s. Many corps will go bankrupt. Govs. will have to step in. Those that bought the paper, unsble to get metal or flip the metal will also go bankrupt. Govs will need to pay the losses under loan recovery conditions. Shorting will be a thing of the past. Nf