Low trading activity continues to weigh on Shanghai copper premiums
- Arbitrage loss, subdued buying appetite pressures Shanghai premium
- European market sees less tonnage in long-term negotiations
- Labor strikes prompt concerns for US production
The Shanghai copper premiums, both on a cif and bonded basis, continued to fall amid the lack of buying interest in the week to Tuesday November 19.
Fastmarkets assessed the copper grade A cathode premium, cif Shanghai
at $62-73 per tonne on Tuesday, down by $2.50 per tonne at the midpoint from $65-75 per tonne a week prior.
Subdued spot interest was attributed to a confluence of diverted attention toward annual supply negotiations and a persistent import arbitrage loss for material brought into China.
“There is low buying interest at year-end as people are busy with annual contracts,” a Shanghai-based trader told Fastmarkets.
“The arbitrage loss is narrowing a bit, but buying interest...