Asia premiums continue to make gains
- Chinese market eyes VAT reduction margin in premium rise
- Stagnant demand hinders European spot business
- United States looks ahead with market steady
Copper premiums have continued to rise in the port of Shanghai, where buyers continue to speculate about the likelihood of a cut in value added tax from 13% to 9% later this month.
Fastmarkets' copper grade A cathode premium, in-whs Shanghai premium
, was $68-86 per tonne on Tuesday April 14, its highest level since October.
Chinese trading companies have scrambled to import cathodes basis LME to sell in the domestic market and capture a potential 3% reduction in VAT as margin, roughly $153 at today's $5,100 per tonne copper price