GLOBAL COPPER WRAP: Spot buyers cautious on high price, backwardation

Spot trading sentiment in the global copper market is low this week with buyers cautious on the high copper price and backwardation, leaving premiums mostly stable except for a slight rise in Rotterdam, sources told Fastmarkets on March 2.

  • The London Metal Exchange cash-to-three-month copper spread is in a $49.75-per-tonne backwardation on March 2
  • Copper buyers are hesitant after the recent copper price rally
Volatile price and lack of arb opportunity keeps Chinese buyers away
Spot buying appetite in the imported copper market remained low due to a volatile copper price and lack of arbitrage opportunities between London and Shanghai keeping Chinese buyers away from the market.
Fastmarkets assessed the copper grade A cathode premium, cif Shanghai at $60-75 per tonne on Tuesday, compared with $60-73 per tonne a week prior.

The copper contract on the Shanghai Futures Exchange...


Julian Luk

Rijuta Dey Bera

Sally Zhang

March 03, 2021

09:58 GMT

New York, Shanghai, Hong Kong