Chinese yuan-denominated copper cathode premiums hit 2018 high on restocking activity

Top brands of electro-refined copper cathode in China traded at premiums of 80-100 yuan ($11.70-14.60) per tonne on top of the Shanghai Futures Exchange front month copper contract price on Monday August 6, marking a fresh 2018 high for such premiums, according to market participants.

Relatively low stock levels, depressed prices for front month copper contracts on the SHFE and renewed credit quotas were cited as the main reasons behind a wave of restocking from copper processing plants, which pushed yuan-denominated copper cathode premiums to fresh highs this year.

On August 6, the SHFE’s front month copper contract - the August contract - closed at 49,220 yuan per tonne, a decrease of around 11% from the front month contract’s closing price of 55,100...

Published

Violet Li

August 13, 2018

09:05 GMT

Shanghai