Please explain the 4th paragraph.
Sir please explain this paragraph, From aluminum to zinc, spot prices for base metals on the London Metal Exchange are all soaring above futures -- a condition known as backwardation -- for the first time since 2007. Buyers are paying a premium for access to metal against a backdrop of plunging exchange inventories, supply-chain delays, production hiccups and surging demand for industrial commodities in everything from construction
4th para, signs of tight supply one
Does fluctuation in fuel prices play a role in this?
sir can you please explain entire post, as very difficult to understand, only first 4 para understood.
is this surge in demand of industrial commodities, etc due to economy revival post pandemic? if yes then this would be for temporary period of time as there is no shortage of metals 9natural resources) as such?
Why would the price spread in other exchanges tighten when it is loosening in the LME? (last 3rd para)
What do they mean by logistical turmoil? Also can you explain the 4th paragraph?
What is Backwardation?