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.