GLOBAL COPPER WRAP: Shanghai, German premiums down amid oversupply; US market unmoved

Copper premiums in Shanghai and Germany fell in the week to Tuesday September 22 due to oversupply against demand; while premiums in the United States were unmoved with only thin activity in the spot market.

  • A widening backwardation and negative import arbitrage put downward pressure on Shanghai premiums
  • Shanghai bonded stocks rise due to a closed import arbitrage
  • EQ cathodes trade below parity amid sluggish spot demand
  • German premiums weighed down by inventory offloading activities, backwardation structure
  • Premiums in the United States unchanged, spot market slow  
Shanghai premiums drop, bonded stocks rise
Copper cathode premiums fell across Asia, with regional demand for spot units dimming at the same despite supply remaining resolutely strong.

Fastmarkets' assessment for the copper grade A cathode ER premium, cif Shanghai dropped to $40-45 per tonne on Tuesday September 22, $5 lower at...


Anna Xu

Archie Hunter

Julian Luk

Rijuta Dey Bera

September 23, 2020

12:32 GMT

Shanghai, New York, London