GLOBAL COPPER WRAP: Shanghai premium hits fresh low; European, US markets flat

The Shanghai copper premium fell to a fresh low in the week ended Tuesday February 26, with the Chinese market contending with sluggish downstream demand, high domestic stock levels and a steep backwardation in London Metal Exchange forward price spreads.

Elsewhere, premiums across Europe and the United States were unchanged, though demand was said to be firm in the latter. Shanghai premium continues to soften European rates flat on soft demand, ample supply US market steady, demand said to be strong Shanghai premium continues to slide In China, the premium for copper cathode on a cif Shanghai basis continued to soften this past week due to sluggish downstream demand, high availability of stocks in the country and a sustained backwardation in the LME’s cash/three-month copper spread. Fastmarkets assessed the premium for grade A copper cathode, cif Shanghai, at $50-65 per tonne on February 26, narrowing downward by $5 per tonne from $50-70 per tonne a week ago. The latest assessment marks the premium’s lowest level since September 2017. “Downstream buying in China was limited even though downstream smelters have largely resumed operations after the Lantern Festival (February 19). Obviously [smelters] cannot afford the recent...


Ellie Wang

Dalton Barker

Julian Luk

Hassan Butt

February 27, 2019

03:25 GMT

Chicago, Shanghai, London