Year-end destocking, closed arb continue to weigh in Shanghai
- Shanghai cif premium hits fresh four-month low.
- US and European premiums unchanged amid thin trading.
Bearish sentiment for copper demand in China, stemming from year-end destocking and the enduring negative arbitrage, weighed on Fastmarkets’ Shanghai copper cathode premiums over this past week.
Fastmarkets assessed the copper grade A cathode premium, cif Shanghai
at $54-65 per tonne on Tuesday, down by $4.50 per tonne at the midpoint from $58-70 per tonne a week prior. The premium has been on a general downtrend since late October when it was at $70-83 per tonne on October 23.
The cif Shanghai copper premium is now at its lowest since August 2 when Fastmarkets assessed it at $52-70 per tonne.
The sustained negative import arbitrage, low demand at year-end and destocking have accelerated the declines, market sources said.
The average loss for importing the...