Copper Price Manipulation: Unpacking the Systemic Drivers of Trafigura's Warehouse Withdrawal
Original framing: “Trafigura Withdraws Huge Volumes of Copper From LME Warehouses” — Bloomberg
The copper market has a long history of manipulation and price volatility, dating back to the 19th century. The 2015 scandal involving Glencore and Vale is a recent example of the systemic problems plaguing the industry.
The withdrawal of copper from London Metal Exchange warehouses by Trafigura highlights the systemic problems plaguing the copper industry, including market manipulation, price volatility, and the concentration of market power.
A consideration of indigenous perspectives, historical context, and cross-cultural wisdom highlights the need for greater social and environmental responsibility in the industry. Regulatory reform, market diversification, transparency and accountability, and social and environmental responsibility are all essential solution pathways for promoting a more sustainable and equitable copper industry.