Shanghai premiums make further gains but momentum slows
- The Shanghai copper cathode and bonded premiums increased on arbitrage buying
- Chinese imports down by 17% in June
- US premium begins to trend lower
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...