GLOBAL COPPER WRAP: Shanghai copper premiums at 2020 low; India buying keeps Southeast Asia tight

Shanghai copper premiums came under pressure in the week to Tuesday September 15 with the London Metal Exchange copper price reaching its highest level in two years, while premiums in Europe and the United States remained stable amid minimal spot appetite.

  • Arbitrage window remains closed with import loss to send copper to China at $107.83 per tonne as of Tuesday
  • EQ cathode reported offered at a discount and around parity to Chinese importers
  • An outage at Birla Copper said to be boosting spot demand from India this week
Shanghai premiums continue sliding; India demand uptick keeps Southeast Asia tight
Cif copper premiums in Shanghai fell to their lowest levels since January this week, as market conditions worsen for holders of prompt cargoes.
Fastmarkets’ assessment of the daily copper grade A cathode ER premium, cif Shanghai was $40-50 per tonne on Tuesday, down from $45-55 a week earlier. This is its lowest level since January 8 when the premium was assessed at $40-48 per tonne.

Although domestic demand for copper in China remains firm, high exchange prices have seen a wave of scrap metal unleashed, dampening the need for manufacturers to...

Published

Archie Hunter

Julian Luk

Hassan Butt

Rijuta Dey Bera

September 16, 2020

10:11 GMT

London