China premium rebounds strongly
- Premiums in Shanghai rise on strong domestic market
- Fresh pandemic concerns damp Southeast Asia demand
- US premiums steady at high levels.
China’s import appetite for copper cathodes improved notably in the week to July 20, supported by improving arbitrage conditions.
Market interest in bonded cathodes was particularly strong because of a high premium in China’s domestic spot market, which increased importers’ profits.
“We’ve had a lot of inquiries for bonded cathodes since late last week,” a Shanghai-based trader said. “Good brands are trading around 400 yuan [$62] per tonne in the domestic market, which means more profits for us if we import.”
“Market participants are all looking for...