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,...