Deliveries to LME warehouses could lend support to Shanghai-London arbitrage

Although the copper import market in Shanghai remained quiet this week, new deliveries to London Metal Exchange Asian warehouses could pressure LME prices and help to improve the Shanghai-London arbitrage.

Deliveries to LME Asian warehouses were down 1,825 tonnes to 222,725 tonnes as of Thursday July 7, but it remain 29,200 tonnes, or 15% higher, than a week ago.  The three-month copper price on the LME had dropped to $4,685 per tonne as of 03:40am London time on Friday morning, down about 5.54% from its high earlier this week. The most-traded SHFE copper contract fell about 5.24% from this week's peak to 36,520 yuan per tonne. The bulk of the new deliveries are believed to have come from major Chinese smelters. “There are more Chinese smelters’...

Published

Kiki Kang

July 08, 2016

07:40 GMT

Shanghai