GLOBAL COPPER WRAP: Shanghai premiums continue to recover; European and US markets largely flat

Copper premiums continued to recover in Shanghai on a more favorable import arbitrage ratio and a fall in domestic copper stocks, while the European and US markets were largely quiet amid dull spot demand.

  • Shanghai premiums up due to a more favorable arbitrage and lower copper stockpiles
  • Rotterdam premium narrows amid static copper market, other European regions flat
  • US copper premium remains flat after Trump suspends Mexico tariffs talks
Shanghai premiums up as favorable arbitrage remains in place 
Copper cathode premiums in Shanghai continued to rise for a fourth straight week amid a more favorable import arbitrage on bringing the red metal into China since May.
Fastmarkets assessed the premium for grade-A copper cathode at $50-69 per tonne cif Shanghai on Tuesday June 11, up from $47-65 per tonne a week earlier.
This compares with a multi-year low of $36-60 per tonne hit in early May before the import arbitrage ratio started to improve.

Meanwhile, the in-warehouse premium in Shanghai rose to $50-67 per tonne on Tuesday, up $2 at the top end from the $50-65 per tonne on...


Ellie Wang

Hassan Butt

Rijuta Dey Bera

June 12, 2019

10:34 GMT