GLOBAL COPPER WRAP: Cif Shanghai premium softens ahead of Golden Week; ample stocks stifle European market

The Chinese copper premium cif Shanghai was lower in the week to Tuesday September 17 due to a closed arbitrage window and lackluster physical demand ahead of the week-long October National Day holiday, while low demand and continued high inventory kept the European market unchanged for the 14th consecutive week.

  • Spot trading interest for imported copper cargoes in Shanghai remains low on closed arbitrage window. 
  • Cargoes arriving at late September are unpopular because Chinese markets will be closed for the 70th anniversary of the formation of the People’s Republic of China in early October. 
  • Copper premiums for Southeast Asian rose on improved market interest. 
  • European spot copper premium was flat on ample copper availability and a relaxed forward curve.
National Day holiday, closed arb deters interest
In China, the copper premium for imported cathodes into Shanghai edged down this week due to subdued demand. Market participants pointed to a continued negative arbitrage between London and Shanghai and reluctance to secure material ahead of Golden Week in early October.
Fastmarkets assessed the copper grade A cathode premium, cif Shanghai at $65-80 per tonne on Tuesday, down slightly from $65-82 per tonne a week prior.

It is...


Ellie Wang

Julian Luk

Hassan Butt

Rijuta Dey Bera

Sally Zhang

September 18, 2019

11:05 GMT

London, Shanghai, New York