GLOBAL COPPER WRAP: Falling Shanghai bonded stocks bolster cathode premium; European, US premiums stable

The Shanghai copper cathode premium edged higher in the week to Tuesday September 10 against the continued fall in the region’s bonded stocks, while a climbing three-month copper price on the London Metal Exchange kept premiums in Europe and the United States stable.

  • Shanghai bonded stocks hit lowest levels since 2016
  • Codelco keeps European annual premium unchanged at $98/t
  • Thin spot trading caps US premium
Shanghai copper premiums refresh nine-month highs
Historic low level of Shanghai bonded stocks helped drive the in-warehouse Shanghai copper cathode premium up to the highest level since November 2018.
Fastmarkets assessed the copper grade A cathode premium, in-whs Shanghai at $70-85 per tonne on Tuesday, up by $3 per tonne from $67-82 per tonne on September 3.
Shanghai bonded stocks are at their lowest since February 2016 at 334,000-337,000 tonnes as of September 9, according to Fastmarkets' survey. This is down by 7.35% from the level seen as on August 27.
Historically, the cif Shanghai premium rises in September and October due to increased consumption of copper during that period.

“Cargo-holders refuse to sell goods at low levels, especially with optimistic outlook for September...


Ellie Wang

Hassan Butt

Rijuta Dey Bera

Sally Zhang

September 11, 2019

13:21 GMT

London, Shanghai, New York