Shanghai copper premium jumps 13% in two weeks amid US-China trade war

Trade war-related currency fluctuations have led to an unexpected spike in Asia copper premiums after a fall in the yuan opened import arbitrage opportunities in the region.

Premiums for Grade A cathodes basis cif Shanghai have leapt in the past week to their highest levels since February 2016, with material trading at up to $100 per tonne over LME cash prices. The daily premium reached $83-100 per tonne on Thursday September 13, compared with $73-89 per tonne at the start of the month.
Meanwhile, premiums basis major Southeast Asian ports are averaging $85 per tonne, the highest since Metal Bulletin began coverage in June 2016. Premiums for Taiwan also went up to $75-85 per tonne this week, the highest since the beginning of 2017.



Archie Hunter

Julian Luk

September 13, 2018

17:45 GMT