US dollar strength pressures copper prices, deep LME backwardation flips LC spread

Published: Sep 2, 2026 09:49

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Geopolitical conflicts intensified on the macro front, coupled with rising expectations for US Fed interest rate hikes, driving the US dollar index higher and putting copper prices under pressure. However, LME near-month contracts showed a deep backwardation structure, causing the price spread between the two markets to reverse. As of press time, the COMEX 2609 contract traded at a discount of about $88/mt to the LME 3M contract.

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