Domestic Chinese copper cathode premiums dropped sharply in the week to Tuesday September 1 to their lowest level in six months, while a climbing outright metal price and tight forward spreads kept premiums in Europe and the United States unchanged.
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Shanghai copper cathode premiums dropped to their lowest levels in six months after suppliers fire-sold cargoes arriving in the first week of September rather than holding through a widening backwardation and with diminished buying appetite from Chinese consumers.
Fastmarkets' benchmark
copper grade A cathode ER premium, cif Shanghai assessment was $50-65 per tonne on Tuesday, down 14% from $58-70 a week prior, having dipped to as low as $38-68 per tonne last Thursday.
Premiums fell due to worsening demand for copper cathodes in China, which has switched from a squeezed market to one of oversupply.
"Imports were huge in...