GLOBAL COPPER WRAP: VAT cut rumor pushes Shanghai premiums higher; US and European markets freeze

Copper premiums are rising in China due to suppliers shutting amid global lockdowns and logistics in key producing regions being stretched. A rumor that China will cut VAT is also fueling buying. Meanwhile trade flows, especially in South and East Asia, are in a state of flux.

  • The Democratic Republic of Congo (DRC), Zambia and Peruvian exports cut.
  • India, Malaysia demand chopped on lockdowns.
  • Europe and US markets see little business.
Shanghai cif copper premiums up amid supply constraints; bonded trading improves
Shanghai premiums rose on a cif basis with trade buyers looking to ensure adequate supply for April.
Fastmarkets assessed the copper grade A cathode premium, cif Shanghai, at $53-68 per tonne on Tuesday March 31, up from $50-65 per tonne a week ago and at its highest level since mid-December.
“I am looking for cathodes arriving in April, but found nothing. I don’t think I am the only one having difficulties in hunting for cargoes,” a Shanghai-based trader said.
Sentiment in the market was buoyed by a rumor that the Chinese government will introduce a nationwide VAT cut, stoking buying from traders.

The in-warehouse Shanghai copper premium was unchanged this week at $55-68...


Archie Hunter

Hassan Butt

Rijuta Dey Bera

Sally Zhang

April 01, 2020

12:22 GMT

London, Shanghai, New York