Copper cathode premiums continue to fall in China, edge lower in Europe

Amid ongoing long-term negotiations globally, copper cathode premiums in Europe and China had small declines on November 30, while in the United States they had an uptick following the Thanksgiving holiday period.

Spot buying appetite remains low in China given persistent backwardations on LME spreads. Year-end liquidation, together with LME spreads, is pushing European premiums down. US premiums inch up despite low liquidity.  China premium extends declines; EQ market follows

Chinese premiums for copper cathodes being imported to the country fell amid bearish sentiment in the week ended Tuesday November 30, while spot activity was minimal with the market still focusing on 2022’s long-term supply negotiations.

The lingering steep backwardations on most of the London Metal Exchange's copper spreads discouraged spot buying, putting the market under growing downward risk, Fastmarkets learned.

“Offers were falling, but still received little buying appetite amid persistent wide backwardation[s],” a Shanghai-based trader said.

“It’s a buyer’s market now, [and] buyers were not in hurry to purchase; [they] expect more declines amid bearish sentiment,” a second trader in Shanghai said.

The LME...

Published

Sally Zhang

Ana de Liz

Yasemin Esmen

December 01, 2021

14:26 GMT

Shanghai, London, New York