GLOBAL COPPER WRAP: Shanghai cif premium hits two-month high despite mounting stocks

The Shanghai cif copper cathode premium rose to a two-month high on Tuesday February 25 amid improving sentiment following an increase in market activity, while rates in Europe and the United States were unchanged.

  • 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.

Shanghai cif premium climbs to two-month high despite rising stocks
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.

“Market sentiment...

Published

Archie Hunter

Hassan Butt

Rijuta Dey Bera

Sally Zhang

February 26, 2020

03:40 GMT

Shanghai, London, New York