Copper Surges as Fresh Bets on Tight Supply Catch Shorts Offside

Copper surged toward record highs and price spreads tightened dramatically in London, with holders of short positions coming under pressure while bullish investors bet on looming shortages.

Benchmark three-month prices rallied more than 3% to trade above $10,800 a ton on the London Metal Exchange, recouping losses that followed US President Donald Trump’s threats of stiffer China tariffs on Friday.

The move coincided with an even greater surge in spot prices on the LME, with the market moving into a structure known as backwardation that’s common during periods of supply stress.

Having started the day at a discount, spot prices ...