GLOBAL COPPER WRAP: Shanghai premiums hit 6-mth high, fundamentals weak; US, Europe flat

Copper premiums in Shanghai rose on an open arbitrage early last week, while traders who managed to buy London Metal Exchange material and sell to the Shanghai Futures Exchange have been in the market for available spot market cathodes, Fastmarkets learned in the week to August 13.

  • The Shanghai copper cathode and bonded premiums increased on arbitrage buying
  • Chinese imports down by 17% in June
  • US premium begins to trend lower
Shanghai premiums make further gains but momentum slows
The copper cathode premium, cif Shanghai rose on traders’ increased buying appetite and lower stocks in China, its highest - basis midpoint - since the end of January due to traders’ increasing buying appetite and a ten-month low in bonded copper stocks.
Fastmarkets assessed the copper grade-A cathode premium, cif Shanghai at $58-78 per tonne on Tuesday August 13, up from $58-75 per tonne a week earlier. The latest range, with a midpoint of $68 per tonne, represents the highest since January 25.
Market participants that locked in an arbitrage between LME and SHFE copper prices last week are still buying cathode to fulfil the physical leg of that trade.

“Having locked arbitrage gains in the first half of last...


Ellie Wang

Archie Hunter

Hassan Butt

Rijuta Dey Bera

August 14, 2019

10:35 GMT

London, Shanghai, New York