GLOBAL COPPER WRAP: Shanghai premium drops to 7-month low; European, US rates stable

Domestic Chinese copper cathode premiums continued to decline in the week to Tuesday September 8, whereas minimal spot interest kept premium ranges stable across Europe and the United States.

  • Benchmark Shanghai copper premium falls to a seven-month low due to arbitrage losses, lackluster demand and a backwardated spread.
  • The cif Shanghai copper EQ cathode premium is at its lowest level since the assessment was launched late last year.
  • Cathode premiums across Europe remained stable on minimal spot activity against a strong LME three-month copper price and continued tightness across the metal’s forward curve.

Shanghai copper premium at 7-month low; EQ cathodes trade at discount
The benchmark Shanghai copper premium has dropped to seven-month low due to arbitrage losses, lackluster industrial demand and a backwardated spread.
Fastmarkets assessed the copper grade A cathode premium, cif Shanghai, at $35-55 per tonne on Tuesday, down by $5-10 per tonne from $40-65 per tonne a week earlier and at its lowest since early February this year basis a midpoint of $45 per tonne.

“Domestic copper consumption is slow and the arbitrage window...


Julian Luk

Hassan Butt

Rijuta Dey Bera

September 09, 2020

02:47 GMT

New York