GLOBAL COPPER WRAP: Global premiums flat amid weakening demand

Fastmarkets' global copper premiums held flat on Tuesday May 7 amid a broadly weak buying appetite, while a dip in three-month copper prices on the London Metal Exchange and easing tightness in copper's forward spreads did little to galvanize the stagnant premium levels.

Shanghai premiums hold at a 2-year low Lack of demand limits European buying Weak second-quarter demand caps US premiums Shanghai copper premiums maintain two-year low in lackluster market The Shanghai copper premium remained at its lowest level since March 2017, with market participants noticing the weakness resulting from a still dampened buying appetite. Fastmarkets assessed the premium for grade-A copper cathode at $36-60 per tonne basis cif Shanghai on May 7, widening downward by $2 per tonne on the low end of the range from last week. This level is the bottom since the first quarter of 2017, when the premium reached as low as $30-45 per tonne. “The market is quiet stagnant and gradually we’re losing confidence. We’re not sure when things will pick up again, it’s been a tough year so far for us,” a senior trader based in Shanghai said. “Most traders are attending LME Week in Hong Kong, so...

Published

Dalton Barker

Hassan Butt

Violet Li

May 08, 2019

11:50 GMT

London, Chicago, Shanghai