GLOBAL COPPER WRAP: Falling bonded stocks, imports provide some support to cif Shanghai premium

Limited supply of top brands of copper cathode offset the negative effect of a widening arbitrage loss and supported the cif Shanghai copper premium in the week ended Tuesday July 16; elsewhere, copper premiums were largely unchanged in other global regions we follow.

  • Lower bonded stocks and fewer imports in June capped supported the cif Shanghai premium 
  • Shanghai bonded stocks are down by 21% month on month as of mid-July. 
  • Ample scrap availability dampens US copper cathode spot trade 
  • European premium static due to traders retreating from the spot market during the summer
Less bonded stocks and imports support Shanghai premium
The cif Shanghai copper premium rose slightly this week, supported by less availability especially of top brands, which offset the effect of a bigger arbitrage loss for metal imported from London to Shanghai. Trading volume was thin in the past week.
Fastmarkets assessed the copper grade A cathode premium, cif Shanghai at $53-69 per tonne on Tuesday, up by $1 per tonne from a week prior.

Copper bonded stocks in Shanghai are at a seven-month low as of mid-July and China imported much less copper in June than...


Ellie Wang

Hassan Butt

Rijuta Dey Bera

July 17, 2019

10:30 GMT

Shanghai, London, New York