China premium rises to above two-month high
- European premiums were stable due to approaching holiday season
- Premiums in the United States were stable despite Comex copper prices hike
- London Metal Exchange stocks were at 230,225 tonnes on Wednesday, their highest since June 2020.
China’s premium for copper cathodes being imported into the country rose to its highest level since early May in the week to Tuesday July 27, with increased buying activity amid improving arbitrage terms.
Bonded cathodes were still favored by importers amid a relatively higher premium in China’s domestic spot market, and a higher import interest in bonded cargoes also helped to reduce copper inventories in Shanghai bonded warehouses, according to market participants.
Shanghai bonded copper stocks were at 420,000-434,000 tonnes on July 26, down by 12,000 tonnes from 432,000-446,000 tonnes on July 12, the first decline since early February.