Shanghai cif premium climbs to two-month high despite rising stocks
- Shanghai cif cathode premium hits highest since December 2019.
- Copper stocks in Shanghai bonded zone at six-month high, SHFE stocks also up week on week.
- Limited demand in Europe, US keeps spot premiums in place.
The cif Shanghai copper cathode premium rose to a two-month high on Tuesday, with liquidity boosted by a gradual lifting of transportation restrictions in China and most market participants returning to work.
Fastmarkets assessed the copper grade A cathode premium, cif Shanghai
at $42-60 per tonne on Tuesday, narrowing upward by $2 per tonne from $40-60 per tonne a week earlier. The premium is now at its highest level since December 23, 2019, basis a midpoint of $51 per tonne.
With logistical services gradually returning to normal, participants are now expecting more and more copper fabricators to enter the market, improving trading sentiment.