Shanghai copper premium drops to six-month low
- Shanghai deliverable premium assessments at six-month low
- EQ premiums trading lower in Shanghai
- Some sellers start to offer annual premiums in Europe at discounts to regional benchmarks
Spot premiums for copper cathodes in Shanghai have dropped to their lowest levels since June this year, driving buyers out of the market for cif cargoes.
At $50-63 per tonne on Tuesday December 17, the Fastmarkets copper grade A cathode premium, cif Shanghai
assessment was down by $2-4 per tonne from $54-65 a week prior.
A worsening negative arbitrage to import physical copper into China is continuing to depress premiums there; since the start of December the Shanghai SHFE active contract is up 3.96% at 49,070 yuan ($7,011), while the LME's three-month copper price is up 4.77% at $6,167, making it more expensive to bring units into the country.