Shanghai cif premiums were slightly lower due to import arbitrage loss, a backwardation in the nearby spread and a big delivery into LME warehouses; the rest of Asia was stable.
Italian premium softens on slack demand and with tight supply easing.
US premium stays at multi-year high.
Negative arbitrage, wide backwardation dampen activity
Fastmarkets’ cif Shanghai and in-warehouse Shanghai premiums both were lower week on week on Tuesday mainly due to a closed copper import arbitrage window and a wide backwardation in the LME cash/three-month spread.
Fastmarkets assessed the Shanghai copper premium on a cif basis at $80-100 per tonne on Tuesday, compared with $85-105 per tonne a week prior.
The Shanghai copper bonded warrants premium was $95-110 per tonne on Tuesday, compared with $100-115 per tonne.
A cumulation of factors are weighing on demand, with trading volume thinning in the past week.
There has been a sustained negative arbitrage between...