Spot copper premiums basis cif Shanghai and in-warehouse Shanghai hit nine-month highs of $65-82 and $70-85 per tonne respectively on Thursday September 5.
Traders attributed this to rising buying interest due to a narrowing import loss between London and Shanghai since the beginning of August, when a sharp drop in the value of the yuan forced the Shanghai Futures Exchange copper contract to fall lower than the London Metal Exchange copper price.
A loss of around 100 yuan ($14) or lower per tonne to bring copper cathode into China is sufficient to prompt traders to import the material into the country, according to trader sources.
Thanks to rising buying interest, bonded stocks in the Shanghai area declined to historic lows and conference delegates believe China’s copper cathodes imports in August will record a month-on-month increase.
Also due to higher trader buying interest, the price spread between top Chilean electro-refined (ER) brands...