GLOBAL COPPER WRAP: China EQ cathodes trade at discounts; US participants focused on annual talks

Premiums for non-registered copper cathodes continue to drop in China, with a distinct lack of buyers in the lead-up to the country's Golden Week holidays. Elsewhere, markets are preparing for their annual contract negotiations.

  • Non-registered cathodes trade at discounts in China
  • European market breathes easier as contango returns
  • All eyes on annual contract talks in United States

EQ cathodes a tough sell ahead of Chinese holidays

EQ copper cathode buyers in Shanghai have been requesting steeper discounts in the past two weeks.
“Clients are trying hard to talk it down to a discount of over the mid $20s,” a trader said, noting the difficulty to destock ahead of National day holidays starting October 1.
“It is going to be quite tough for EQ copper cathodes sellers until the premium for London Metal Exchange-registered cathodes rebound and the arbitrage loss narrows,” the source added.
Fastmarkets assessed the copper EQ cathode premium, cif Shanghai at -$15 per tonne to -$5 per tonne on Tuesday October 6, compared with -$10 per tonne to $0 per tonne a fortnight ago.

“Nobody is willing to buy it, not even...

Published

Archie Hunter

Julian Luk

Hassan Butt

Rijuta Dey Bera

October 07, 2020

09:40 GMT

London, Hong Kong, New York