GLOBAL COPPER WRAP: Shanghai premiums edge upward; increased supply pressures European market

Global copper markets trended in opposite directions over the past week, with premiums in China rising, European premiums weakening and the US Midwest premium holding steady – though participants in the United States expect to see a modest gain in the Midwest premium before the month ends.

Tightened supply boosts Shanghai premiums European market pressured by wide availability of material US Midwest premium flat in post-ACC trading; near-term uptick eyed Shanghai premiums edge upward; trading thin due to LME Asia Week In China, the premium for electro-refined (ER) copper cathode in Shanghai on a bonded in-warehouse basis widened upward to $78-87 per tonne on Tuesday May 15, compared with $78-85 per tonne a week earlier. Top brands for ER warrants have traded slightly higher since later last week due to the limited supply in the spot market. Meanwhile, the premium for solvent extraction-electrowinning (SX-EW) cathode warrants was unchanged week on week at $70-75 per tonne on Tuesday amid a lack of buying interest. For material sold on a cif basis in Shanghai, after May-delivery cargoes were mostly sold out due to buyers’ recent appetite for seaborne cathode, traders have become more conservative in their selling, causing...


Gladdy Chu

Dalton Barker

Justin Yang

May 16, 2018

07:35 GMT