China's import appetite for copper cathode dropped sharply following the closure of the arbitrage window between London and Shanghai, pulling premiums lower during the week to Tuesday September 7, while those in other regions were little moved.
Shanghai premiums down from highs amid closed arbitrage
Fastmarkets assessed the benchmark
copper grade A cathode premium, cif Shanghai at $75-90 per tonne on Tuesday, down by $10-15 per tonne from $85-105 per tonne a week earlier.
The corresponding Fastmarkets assessment of the
copper grade A cathode premium, in-whs Shanghai was $90-100 per tonne on the same day, narrowing downward by $5 from $90-105 per tonne one week prior.
"Offers are falling due to low buying interest amid bad arb terms, but still failed to receive much buying, sending down the premium," a Shanghai-based trader said.
"The drop in premium makes sense because no one will buy at highs if arb terms show you no profits at all. And bonded units are limited now following...