GLOBAL COPPER WRAP: China premiums hold on fresh import demand; Europe, US lackluster

A lack of arbitrage opportunities has put Shanghai copper premiums under strain while global copper premiums are stable amid weakening demand conditions in Europe and the US, Fastmarkets understands.

  • Chinese market participants concerned about summer copper demand 
  • European spot appetite wanes
  • Covid-19 concerns limit US business
Shanghai copper premiums narrow downward 
Benchmark Shanghai copper premium narrowed downward with unattractive arbitrage and questionable industrial demand in summer.   
Fastmarkets' assessment of the copper grade A cathode premium on a cif Shanghai basis dropped to $80-90 per tonne on July 1, with top brand electro-refined (ER) cathodes arriving this month sold at $90 per tonne, after the premium stood at $80-95 per tonne a week ago. 
“Demand from end users is typically not that great in July and August. Chinese industrial activity slows down usually in summer,” the first copper trader said. 

Chinese copper buyers are yet to report...

Published

Archie Hunter

Julian Luk

Hassan Butt

Jenny Stewart

July 01, 2020

12:20 GMT

London, New York, Shanghai