London: The American investment bank JP Morgan is the mystery trader that grabbed more than half the copper on the London Metal Exchange (LME), The Daily Telegraph has learnt.
The $1.5 billion (Dh5.5 billion) trade was described in the LME's daily update as "between 50pc and 80pc" of the 350,000 tonnes in reserves.
This pushed up the price for the immediate delivery of copper to $8,700 — its highest levels since the financial crisis in October 2008. A high premium on the spot copper price normally reflects fear of a shortage of the metal, which is in hot demand across the world as a vital component in a mass of products from electrical gadgets to wiring.
A source close to the situation said that JP Morgan had bought the copper contracts. JP Morgan declined to comment.