The nearby LME forward curve switched to a solid contango as well, firming up sellers’ positions globally.
Narrowing import arb loss boosts Shanghai premiums
- Shanghai cif premium rises by $3 per tonne from last Monday; bonded warehouse premium up by $5
- LME cash/three-month spread trades in $19-20 per tonne contango.
- Scrap tightness bolsters sell side in United States
The copper cathode premium in Shanghai rose thanks to a narrower import arbitrage loss and a persistent contango in LME copper’s forward curve.
Fastmarkets assessed the Shanghai cif copper premium
at $58-75 per tonne on January 8, an increase of $3 per tonne from the previous week’s $55-72 per tonne.
Fastmarkets’ Shanghai in-warehouse copper premium
also rose by $5 to $63-80 per tonne from last week.
Importers stood to lose $20.32 for each...