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 June 5. A drawdown in Shanghai-bonded copper stocks - which points to a improvement in downstream...


Ellie Wang

Hassan Butt

Rijuta Dey Bera

June 12, 2019

10:34 GMT