CME Hikes Copper Margins by 20% Amid Record High Prices
Commodity
M
Moneycontrol•30-01-2026, 12:54
CME Hikes Copper Margins by 20% Amid Record High Prices
- •CME increased copper trade margins by 20% on January 30, raising initial margin to $13,200 and maintenance margin to $12,000 per contract.
- •The move followed copper prices exceeding $6 per pound or $14,000 per metric ton on the London Metal Exchange (LME).
- •CME previously raised margins on silver, platinum, and palladium contracts due to heightened risk.
- •Copper prices surged 42% in 2025, driven by a weaker dollar, strong Chinese demand, and potential supply shortages from energy, data center, and automobile sectors.
- •A trader noted uniform market expectations and high volatility, emphasizing risk control and avoiding large positions.
Why It Matters: CME increased copper margins by 20% to manage risk as prices hit record highs due to strong demand and supply concerns.
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