Three-month copper slumped 2.3% on the London Metal Exchange, leading the decline for base metals.
Any restrictions will only serve to hit the centre of European commodity trading, the London Metal Exchange.
For example, MCX designed a small 5-ton contract for copper versus the 25-ton contract that is traded on the London Metal Exchange.
Going by the copper price data on the London Metal Exchange, the average realized price of copper for Freeport is likely to be lower this quarter on a sequential and year-over-year basis.
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The world's largest exchange operator by market value outbid rivals last year to buy the London Metal Exchange, and plans to offer Asia-focused products and explore partnerships with China's own fast-growing trading platforms as soon as next year.
As of the end of last week, the combined totals from the London Metal Exchange, Shanghai Futures Exchange and Comex division of the New York Mercantile Exchange stood at 892, 084 tons, a jump of 51% from 588, 881 at the end of last year, said John Gross, an independent metals-industry consultant.
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The price fall corresponds with a rise in the aluminum stockpile kept by the London Metal Exchange (LME) which was sitting close to a five-year high of 519, 000 tons in mid-February, but which has since slipped marginally to 517, 000 tons, indicating the that Chinese stockpile buying might have started when LME warehouses levels were approaching a peak.
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The tax collection case dates back to the 1990s when the IRS vetoed Monex's use of a tax shelter involving London Metal Exchange straddle transactions.
One factor that might explain falling prices is the persistently high aluminum inventory relative to demand, which may be keeping a lid on London Metal Exchange prices for aluminum.
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