GLOBAL COPPER WRAP: Shanghai premiums extend lower; Europe, US markets stable [CORRECTED]

Year-end destocking continues to prolong a downturn in Shanghai copper cathode premiums but US and European markets are unchanged while annual contracts are being negotiated.

Shanghai cif premiums at four-month low US annual contracts in focus Large-scale cancellations of European on-warrant stocks Shanghai premiums drop to three-month low, bonded premiums stable
Copper cathode premiums on a cif basis in Shanghai continued to decline while low bonded stocks kept the premium on material warehoused there steady.

Fastmarkets assessed the copper grade A cathode premium, cif Shanghai at $58-70 per tonne on Tuesday December 3, down by $2.50 per tonne at the midpoint from $60-73 per tonne a week prior.

The enduring lasting negative arbitrage and a traditionally low season during the final months of the year are weighing on premiums.

The average arbitrage loss was $62.91 per tonne for the week ending Tuesday December 3 compared with an average loss of $47.15 per tonne...

Published

Hassan Butt

Rijuta Dey Bera

Sally Zhang

December 04, 2019

13:54 GMT

Shanghai, London, New York