Shanghai copper premiums narrow downward
- Chinese market participants concerned about summer copper demand
- European spot appetite wanes
- Covid-19 concerns limit US business
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...