Shanghai copper premium at 7-month low; EQ cathodes trade at discount
- 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.
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...