GLOBAL COPPER WRAP: Firm Sep outlook caps Chinese premium downtrend; US narrows down on downstream pessimism

The cif Shanghai copper premium dipped in the week to Tuesday August 20 due to widening import arbitrage losses but market participants are optimistic of a rebound in September, which is traditionally a period of increased consumption.

  • 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...


Ellie Wang

Hassan Butt

Rijuta Dey Bera

August 21, 2019

09:59 GMT

Shanghai, London, New York