GLOBAL COPPER WRAP: Shanghai cif premium refreshes 2018 low; LME spreads return to contango

Chinese copper premiums continued to soften in the week ended Tuesday December 18 amid steep import losses and bleak domestic demand, with the grade A copper cathode premium cif Shanghai sliding to a level last seen in late January.

Elsewhere, there was limited spot trading across global markets despite the London Metal Exchange’s cash/three-month spread swinging to a contango.
  • Shanghai cif premium drops to its lowest since late January
  • LME three-month spreads swing to contango
  • Premiums unchanged in Southeast Asia, Europe on thin spot trading

Shanghai cif premium refreshes 2018 low

In China, copper premiums remained under pressure this past week due to a closed arbitrage window and sluggish demand in the run-up to the end of the year.
Fastmarkets assessed the Shanghai cif copper premium at $55-70 per tonne on December 18, matching the premium’s lowest level for this year reached on January 22. The premium had been assessed at $55-72 per tonne on December 11.

This fresh low highlights a large discrepancy between spot...


Ellie Wang

Julian Luk

December 19, 2018

06:00 GMT

London, Shanghai