GLOBAL COPPER WRAP: China annual negotiations stalled; US premium softens

Spot appetite for copper cathode was minimal in China and the United States in the week to Tuesday November 17, while the Southern European market showed signs of a recovery.

  • Greater interest for EQ-grade copper in China than for grade-A cathode amid annual talks
  • Southeast Asian participants concerned by Indian supply disruptions
  • Spot demand returns in Italy, supporting premiums
  • US premium drops as buyers remain on the sidelines

Annual talks continue in China with few deals concluded

Participants in the Shanghai copper market continued to focus on 2021 contractual negotiations this week, keeping spot activity to a minimum and the cif premium flat.
Fastmarkets assessed the copper grade A cathode premium, cif Shanghai at $35-50 per tonne on Tuesday, unchanged from a week earlier.
Chilean copper producer Codelco rolled over its premium offer of $88 per tonne to Chinese copper market participants for 2021.
But focus during negotiations is not only on the premium number but also on payment and incoterms, with many buyers still hesitant to sign long-term deals, multiple market sources said.

Shanghai EQ premium up as arbitrage...

Published

Archie Hunter

Julian Luk

Rijuta Dey Bera

November 18, 2020

08:45 GMT

New York, London, Hong Kong