Shanghai premium down slightly week on week
- 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
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...