Cif Shanghai premium narrows after import arbitrage loss between London and Shanghai widens
Narrowing contango in London Metal Exchange forward spreads and tighter credit weaken trader confidence in holding onto the red metal
Slack demand leaves copper premiums flat in Italy, the US
Shanghai premiums dipped due to wider import loss and tighter credit
Copper premiums for Shanghai on both cif basis and on bonded warrants basis dipped on Tuesday July 2 due to a widening import arbitrage loss between London and Shanghai and a narrowing contango in the cash/three-month copper spread since late June, as well as a tightening in credit issued by banks in the middle of the year.
Fastmarkets assessed the premium for grade-A copper cathode at $52-68 per tonne cif Shanghai on Tuesday, with the lower end of the range down by $2 per tonne from $54-68 per tonne a week earlier.
Fastmarkets' assessment for Shanghai in-warehouse premium was at $50-67 per...