BiyaPay Analyst: 50,000 Tons of Copper Massively Withdrawn, LME Inventory Crisis May Trigger Another Short Squeeze

According to TechFlow, on December 5th, 50,000 tons of copper were “emptied out” in one go, dealing a heavy blow to the London Metal Exchange’s inventory. Commodity giant Mercuria, in order to hedge against the risk of Trump-era tariffs, withdrew over 40,000–50,000 tons of copper from LME’s Asian warehouses, accounting for about one-third of total inventory, pushing copper prices to nearly $11,500 per ton at one point. The spot price saw a significant premium over the three-month futures, and expectations of a short squeeze intensified in the market.

BiyaPay analysts indicated that if the US continues to “draw away” global supply through tariffs and key mineral policies, non-US regions may face an even more severe refined copper shortage in the first quarter of next year. High costs will further impact the manufacturing and new energy sectors. For ordinary investors, BiyaPay can be used with USDT to participate in US stocks, Hong Kong stocks, and copper mining or resource-related futures stocks. At the same time, investors can use zero-fee digital currency spot and contract tools for swing trading, but should be wary of both policy and price fluctuations, and control leverage and position size.