Goldman warning on backwardation in copper to reverse inventory depletion. The LME copper inventory has been falling for months, and just keeps on going: (VIEW LINK). Now Goldman warns that the market is about to tighten. Reuters: Copper spreads on the LME tightened sharply last week as the market finally started reacting to the continued steady erosion of available stocks. A note by Goldman Sachs, advising short position-holders to roll out of the front part of the curve, seems to have acted as a collective wake-up call. Analysts at the bank warned that the benchmark cash-to-three-months time spread CMCU0-3, valued at $83.50 per tonne backwardation at Tuesday's close, could flex out to $100-$150 imminently. Stock trends now hold the key to how tight this market could get. The LME system needs fresh supply, and to get it, the backwardation must move to a level that incentivises deliveries into LME: (VIEW LINK)