GLOBAL COPPER WRAP: Shanghai premiums rise again; Europe stockpile illuminated

Copper premiums continued to rise in Shanghai in the week to Tuesday July 14, but were down in Southeast Asia as consumers balked at soaring exchange prices. Supply should increase in the United States as smelting resumes at Haden, while data released by the London Metal Exchange shows a large stockpile in Europe.

  • Premiums rise in Shanghai but dip in Southeast Asian ports.
  • May off-warrant stock data released by LME shines light on Rotterdam stockpile.
  • Potential Haden resumption could boost US supply.
Asia copper premiums diverge on contrasting demand
Premiums for copper cathodes across Asia moved in different directions over the past week, as arbitrage boosted demand in China, but manufacturers in Southeast Asian countries declined spot units.
The Fastmarkets copper grade A cathode ER premium, cif Shanghai assessment was $87-95 per tonne on Tuesday, up from $80-88 per tonne a week earlier.
Shanghai premiums rose after supply concerns in Chile, the world’s top copper-producing country, sent exchange prices soaring on Monday morning trading, with big price moves briefly opening an import arbitrage.

The bump has driven traded premiums higher, although most buyers...


Archie Hunter

Hassan Butt

July 15, 2020

13:42 GMT