Volatile price and lack of arb opportunity keeps Chinese buyers away
- 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
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...