SHANGHAI, Apr 20 (SMM) – Yangshan copper premiums have continued to climb since the start of 2018, staying at levels higher than the benchmark of $75/mt for the most part.
Offers with warehouse warrants were heard offered above $90/mt, SMM learned.
This is because a tighter copper scrap supply has boosted consumption of imported copper cathode, as the import arbitrage window was open for a longer period, SMM believes.
In addition, sellers were able to keep their offers high against the backdrop of a steep LME contango. Tighter credit situation this year in China also helped as market participants continued to use imported copper for financing.
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