Shanghai cif premium hits $80/t as Chinese participants bet big on VAT cut
- Chinese market participants scramble to buy cargoes for nearby delivery.
- Spot business dries up in Europe and the US.
- US market participants brace for dual supply/demand impact.
Copper cathode premiums in Shanghai rose sharply on Tuesday April 7, with the increase coming while Chinese market participants scrambled to secure cargoes for nearby delivery.
Fastmarkets assessed the copper grade A cathode premium, cif Shanghai
at $63-80 per tonne on Tuesday, up by $10-12 per tonne from $53-68 per tonne a week earlier.
Premiums for cathodes in Shanghai's bonded zone are currently as high as $82 per tonne, with buyers valuing proximity and guarantee the units will be importable into China at a greater premium than seaborne cargoes.
Buyers are hoping for a cut to VAT to be announced when China's National People's Congress...