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...