GLOBAL COPPER WRAP: Shanghai premiums drop again, US, European rates steady

Premiums for copper cathode in Shanghai continued their slide this week, and are now at one-and-a-half-month lows. Demand globally remains sluggish while seasonally weak summer buying is being compounded by concerns over extended recessions due to the Covid-19 pandemic.

  • Shanghai copper premiums drop after stocks rise.
  • Rotterdam premium stable amid low spot appetite, summer closures.
  • US premium flat, but a slow recovery possible going forward.

Decline in Chinese premiums continues; Southeast Asia market steady
Premiums for copper cathode in China continued to soften this week; with arbitrage opportunities limited and visible stocks rising, importers are said to be less keen to purchase units.
Fastmarkets' assessment of the copper grade A cathode ER premium dropped to $70-78 per tonne on Tuesday August 4, the lowest it has been since June 16.
On-warrant stocks of copper at Shanghai Futures Exchange warehouses totaled 62,136 tonnes on July 31, up from 36,763 tonnes at the end of June.

A backwardation in London Metal Exchange futures spreads had...

Published

Anna Xu

Archie Hunter

Hassan Butt

Jenny Stewart

August 05, 2020

11:12 GMT

Shanghai, London, New York