GLOBAL COPPER WRAP: Shanghai premiums rebound; Italy level at lowest since Jan 2018

Shanghai copper premiums were supported on Tuesday March 12 by tight Chilean supply and while traders stockpiled material ahead of an expected tax cut in May, while the Italian premium fell to its lowest level in 14 months.

Shanghai premiums recover on short supply of high-grade Chilean brand cathodes and an expected value-added tax cut.  European copper market remains quiet due to LME spread backwardation, while the Italian premium dropped to a January 2018 low.  The US copper cathode premium remains stable at high level despite anticipated influx of Chinese material. Shanghai premium supported by further delays in Chuquicamata restart In China, the premium for copper cathode on a cif Shanghai basis widened on Tuesday, mainly due to further delays in the restart of operations at the Chuquicamata smelter and an expected cut in China’s value-added tax (VAT) in May. Fastmarkets assessed the premium for grade A copper cathode, cif Shanghai at $45-70 per tonne on Tuesday from $47-62 per tonne a week prior. The top end of the premium has increased by $8 week on week because further delays to Chilean copper-mining giant Codelco’s smelting plant...


Ellie Wang

Dalton Barker

Julian Luk

March 13, 2019

12:53 GMT

London, Chicago, Shanghai