Shanghai premiums fall to lowest since October 2017
- Shanghai premiums drop to lowest since October 2017
- US annual premiums show year-on-year increase
- European spot premiums flat despite Aurubis disruptions
The grade A copper premium cif Shanghai fell to its lowest level on the midpoint since October 2017 on Tuesday due to sustained arbitrage loss for imports between London and Shanghai as well as a wide backwardation on the London Metal Exchange cash/three-month spread.
Fastmarkets assessed the grade A copper cathode premium on a cif Shanghai basis
at $60-75 per tonne, down from $70-83 per tonne a week prior. On September 10, the grade A copper cathode premium cif Shanghai was $100-120 per tonne.
Market participants attributed the unilateral downward movement to a widening loss for copper cathode imported to China and a persistent backwardation in the LME’s cash/three-month spread.
The import arbitrage loss between...