Elsewhere, ample supply softened copper premiums in Italy and the United States, with a seasonal dip in demand and a weakened auto sector cooling spot sales of copper cathode.
Shanghai premiums narrows downward amid fading buying appetite
- Cif Shanghai premium narrows after import arbitrage loss between London and Shanghai widens
- Narrowing contango in London Metal Exchange forward spreads weakens trader confidence in holding onto the red metal
- Increased supply drags on copper premiums in Italy, the US
The copper cathode premium in Shanghai on a cif basis narrowed downward due to a wider import arbitrage loss between London and Shanghai as well as narrowing contango in the cash/three-month copper spread on the LME.
Fastmarkets assessed the premium for grade-A copper cathode
at $54-68 per tonne cif Shanghai on Tuesday, narrowing downward by $3 per tonne from $54-71 per tonne a week earlier.
Market participants attributed the softening of the...