[LME Tightens Rules on Long Positions Amid Supply Disruptions in Aluminium and Copper]

Published: Jun 26, 2025 22:14

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The London Metal Exchange (LME) has introduced new temporary rules to limit large long positions beyond the cash date, extending them to the next monthly prompt. This move responds to market volatility in aluminium and copper, where tight inventories and major positions have caused price distortions.
LME inventories of both metals are near historic lows—aluminium due to sanctions on Russian supply, and copper due to increased U.S. imports driven by tariff-induced arbitrage. With non-Russian aluminium becoming scarce, and copper inventories drawn to the U.S., LME faces mounting stress on its delivery system.
The new rules aim to curb dominant market positions that could corner liquidity, but they also risk reducing incentives to deliver metal into the exchange—further challenging LME’s role as the market of last resort.

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