GLOBAL COPPER WRAP: Shanghai premium rebounds on VAT cut; European premiums flat amid stagnant demand

Shanghai copper premiums rebounded on Tuesday March 19 as the Chinese government announcement of a reduction in the value-added tax (VAT) rate from April 1 stimulated buying appetite, while in Europe copper premiums were unchanged amid stagnant demand.

  • Shanghai premium rebounds as a cut in the VAT  rate stimulates traders’ appetite
  • Demand in Europe remains stagnant amid big delivery into LME-listed Rotterdam warehouses
  • US premiums stable, while market participants are ready to move forward into the liveliest season
Shanghai premium rebounded due to earlier-than-expected 3% lower VAT
In China, the premium for copper cathode on a cif Shanghai basis continued to rebound on Tuesday, with a 3%reduction in the VAT rate slated to come into effect on April 1 stimulating buying interest. 
Fastmarkets assessed the premium for grade A copper cathode, cif Shanghai at $48-72 per tonne on Tuesday from $45-70 per tonne a week prior.

The low end of the premium increased by $3 week on week as lower quality copper cathode prices followed those of top brands CCCP and ENM higher. A number of deals for ESOX solvent extraction-electrowinning (SX-EW) brands were reported at...

Published

Ellie Wang

Dalton Barker

Hassan Butt

March 20, 2019

04:45 GMT

Shanghai,Chicago, London