Improved arbitrage drives up Shanghai cif premium, but trades thin
- Improved arbitrage prompts Shanghai premium interest
- European demand woes continue
- US traders wary of import arbitrage loss
The copper premium, cif Shanghai rose by $3 per tonne in the week to Tuesday September 24 due to an improved arbitrage between London and Shanghai, which bolstered traders’ interest in imports. Although trades have been thin in the past week due to traders gradually leaving for China’s National Golden Week Holiday (October 1-7).
Fastmarkets assessed the copper grade-A cathode premium, cif Shanghai
at $68-83 per tonne on Tuesday, up $3 per tonne from $65-80 per tonne a week prior.
“The arbitrage was pretty good on Thursday September 19 and Friday September 20, so trades are getting better and supporting higher premiums,” a Shanghai-based trader told Fastmarkets.
The arbitrage loss between the London Metal Exchange and Shanghai on Tuesday came in at...