GLOBAL COPPER WRAP: Chinese premiums edge upward; European, US markets unchanged

Sentiment in the Chinese copper market improved over the past week after more participants returned to work following extended holidays, resulting in growing expectations for a recovery in demand that allowed Shanghai premiums to creep upward on Tuesday February 18.

But participants question the sustainability of the increase in premiums given the slow recovery in demand due to the ongoing novel coronavirus (2019-nCoV) outbreak in China and the government’s strict measures to contain it.
  • Demand in China said to be recovering slowly; Shanghai premiums edge up.
  • Spot business in Europe remain weak amid worries from the ongoing coronavirus outbreak.
  • Wide contango on LME helps stabilize US premium.

Improving sentiment, demand push Shanghai premiums up

China’s copper market continues to feel the effects of the ongoing coronavirus outbreak in the country, but Shanghai premiums recovered slightly this week amid improved sentiment and growing expectations for a recovery in demand as more participants return from holidays.
Fastmarkets assessed the copper grade A cathode premium, cif Shanghai at $40-60 per tonne on Tuesday, up by $3-5 per tonne from $37-55 per tonne a week earlier.

While demand is said to be...

Published

Hassan Butt

Rijuta Dey Bera

Sally Zhang

February 19, 2020

10:15 GMT

Shanghai, London, New York