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 and October,” a Shanghai-based trader told Fastmarkets. The optimism...


Ellie Wang

Hassan Butt

Rijuta Dey Bera

Sally Zhang

September 11, 2019

13:21 GMT

London, Shanghai, New York