Sonny McNess Takes Major Copper Position on LME

Sonny McNess, the head metals derivatives trader at Hartree Partners LP, established a major copper position on the London Metal Exchange (LME) to profit from a short-term supply squeeze. McNess purchased large volumes of October-delivery copper contracts while simultaneously taking a short position in November futures.

This trading strategy coincides with expectations that U.S. President Donald Trump may announce tariffs on refined copper. Such tariffs would likely incentivize traders to shift metal from LME warehouses to New York futures contracts. These trades have contributed to high volatility and backwardation in the October-November spread, occurring alongside a tightening copper market driven by increased import demand from China.

The LME has previously modified its rules, including the introduction of front-month lending rules, following large aluminum bets made by McNess during his previous tenure at JPMorgan Chase & Co. and Mercuria Energy Group.