GLOBAL COPPER WRAP: SX-EW tightness boosts Shanghai premium; Europe, US premiums steady

The Shanghai copper cathode premium was higher in the week to Tuesday August 27, marking the fifth uptick this month largely due to emerging tightness in SX-EW availability, while broadly stagnant demand over the summer period has limited spot business in Europe and the United States.

  • SX-EW cathode brand price gap emerges 
  • End-use demand a missing factor for European premiums 
  • Subdued spot buying appetite hinders US premium
Shanghai premium hits nine-month high
The copper grade A cathode premium, cif Shanghai hit a nine-month high of $67-80 per tonne on Tuesday due to a narrower import arbitrage loss during the week and less available cargo in the Shanghai market.
The cif Shanghai copper cathode premium rose by $6.50 per tonne at the midpoint on Tuesday compared with a week prior.
“Traders bringing copper cathodes into China stood to lose less in the week ended on Tuesday August 27,” a trader in Shanghai said. “On Thursday August 22 and Friday August 23 there were even some profits for a time to bring copper cathodes into China,”

The trader added that the lower arbitrage loss combined with the upcoming busy season in September and October...


Ellie Wang

Hassan Butt

Rijuta Dey Bera

August 28, 2019

12:47 GMT

London, Shanghai, New York