GLOBAL COPPER WRAP: Shanghai premiums continue recovery; US, European rates unchanged

Copper premiums in Shanghai continued to edge upward in the week ended Tuesday June 18, with the recovery driven primarily by a favorable arbitrage on bringing the red metal into China.

Elsewhere, premiums in Europe and the United States were unchanged over the past week amid a lack of significant spot activity.
  • Shanghai premiums boosted by favorable arb, expectations of tightness
  • European market flat with spot activity beginning to fade ahead of summer
  • US premium supported by contangos amid sluggish spot trading
Shanghai premiums continue recovery
Copper cathode premiums in Shanghai edged higher on Tuesday, thanks mainly to a more favorable import arbitrage in China which has persisted since May.
Declining domestic stocks and a growing expectation of tightness for certain brands of copper cathode due to strike action in Chile further supported the rise in Shanghai premiums this week.
Fastmarkets assessed the premium for grade-A copper cathode at $54-71 per tonne cif Shanghai on Tuesday, up by $2-4 per tonne from $50-69 per tonne a week earlier.

Meanwhile, the in-warehouse premium in Shanghai rose to $52-67 per tonne on Tuesday,...


Ellie Wang

Archie Hunter

Rijuta Dey Bera

June 19, 2019

10:38 GMT