GLOBAL COPPER WRAP: Shanghai premiums rebound slightly despite thin trade; demand concerns unsettle German premium

The decline in Chinese copper premiums came to a halt in the week ended Tuesday December 11, with rates in Shanghai supported by a reduction in import losses and a narrower backwardation in the London Metal Exchange’s cash/three-month spread.

Elsewhere, the German market suffered from concerns over demand, which caused spot premiums in the country to soften, while US market participants continued to express optimism over business for the coming year. Shanghai premiums halt decline on improved arbitrage, narrowing backwardation Supply remains tight in Southeast Asia, supporting regional premiums German premium softens on demand concerns US premium flat, but optimistic tone persists in market Shanghai premiums stop falling after hitting lowest since Oct 2017 The grade A copper premium cif Shanghai halted its decline in the week ended December 11 due to an uptick in market sentiment stemming from an improved import arbitrage between London and Shanghai and a narrower backwardation in the LME’s cash/three-month spread. Fastmarkets assessed the grade A copper cathode premium on a cif Shanghai basis at $55-72 per tonne on December 11, up $1 per tonne on the high end compared with a day earlier, but down from...

Published

Ellie Wang

Archie Hunter

Dalton Barker

December 12, 2018

10:30 GMT

Shanghai, London, Chicago