The Shanghai Metal Exchange is another notable example, and with China being the largest consumer of refined copper in 2020 at 54 percent of global consumption, it is becoming increasingly important. The LME and the COMEX are far from the only commodities exchanges on which copper is traded. COMEX copper futures are settled via physical delivery upon expiration, but COMEX E-Mini copper futures are cash settled.Īs with the LME, many banks, trading firms and commercial hedgers use COMEX copper for risk management purposes, and CME Group prides the COMEX on being a “global benchmark for copper prices” used by respected indices such as the Bloomberg Commodity Index. They are only open to eligible contract participants as defined by the Commodity Exchange Act.Ĭopper cathode must conform to specific chemical and physical requirements in order to be traded on the COMEX. These types of trades are privately negotiated and executed apart from the public market. As mentioned above, copper contracts are priced per pound on the COMEX, with listed contracts available during the current calendar month, the next 23 calendar months and any March, May, July, September or December within a 60 month period of the current month.Ĭontracts are also block-trade eligible if the amounts are above minimum thresholds. Like LME copper, COMEX copper can also refer to spot copper prices and copper contracts traded on the COMEX.

Both the NYMEX and the COMEX, which merged in 1994, are owned by CME Group (NASDAQ: CME). Headquartered in New York, with offices all over the world, the COMEX is a commodities futures and options exchange similar to the LME. Overall, the exchange is predominantly used to either hedge or take on price risk. The exchange also publishes daily reference prices for LME copper and other metals that are used by market participants. However, it’s important to note that physical delivery is the exception rather than the norm. Some market watchers look to rising and falling inventory levels on the LME as an indicator of global supply and demand conditions. In other words, those in the copper industry may sell LME copper during oversupplied markets and draw on LME copper inventories in the event of a copper shortage. In addition to acting as a futures trading exchange and providing reference prices, the LME acts as a physical market of last resort for producers and consumers of a number of metals, including copper. They may be settled via physical delivery between a network of LME-approved warehouses around the world.įor this reason, LME copper may also refer to inventories of copper cathode in LME warehouses.

There are also longer contracts of up to 123 months.Ĭontract prices are quoted in US dollars and are sold in lots of 25 tonnes. LME copper futures contracts may be set at up to three months with daily expiration dates, or between three and six months with weekly expiration dates. More specifically, LME copper may refer to spot LME copper prices or prices for futures contracts on the London exchange. As mentioned, LME copper refers to copper traded in London, where options and futures contracts for industrial metals are traded.

Comex copper