GLOBAL COPPER WRAP: Shanghai premiums sink to 2-mth low, US levels rise

With annual contract "mating season" truly under way following LME Week in London, spot copper cathode buying has slowed; meanwhile a seasonal tendency for consumers to de-stock at year-end is negatively affecting premiums in Asia but US levels have increased with regional supply in limbo.

Shanghai cathode premiums lowest since August  US copper premiums rise, market yet to feel effect of Asarco outage  European market flat Widening arb, low buying weigh on Shanghai copper premiums Copper cathode premiums in Shanghai dropped to two-month lows on Tuesday November 5 both on a seaborne and bonded warehouse basis, negatively affected by a worsening arbitrage and low buying interest. Fastmarkets assessed the copper grade A cathode premium, cif Shanghai at $67-78 per tonne, down by $1.50 at the midpoint from $68-80 per tonne a week prior, and $4 lower at the midpoint from $70-83 per tonne two weeks ago. The average arbitrage loss for bringing copper into China from London was $78.43 per tonne for the week to Tuesday, compared with an average loss of $77.49 per tonne a week prior, and $35.21 per tonne two weeks ago, according to Fastmarkets’ calculation. “The arbitrage loss is widening,...

Published

Archie Hunter

Hassan Butt

Rijuta Dey Bera

Sally Zhang

November 06, 2019

11:43 GMT

London, Shanghai, New York