Shanghai premium slightly down due to wider import arbitrage loss
US premium narrows downward on soft demand, construction slowdown
European premium holds steady while consumption lags
Shanghai premium down slightly week on week
The cif Shanghai copper cathode premium fell by $2 on the high end of the range on Tuesday largely because of a wider import arbitrage loss between London and Shanghai, which discouraged trading.
Fastmarkets assessed the copper grade A cathode premium, cif Shanghai at $58-76 per tonne on Tuesday, down from $58-78 per tonne a week earlier.
Market participants pointed at the widening import loss this week; copper importers bringing material into China stood to lose $31.54 per tonne on August 20, compared with a loss of $20.53 per tonne on August 13.
“Traders’ buying interest has waned due to wider import arbitrage loss between London and Shanghai compared with the second and third week of August,”...