Spot business in the global copper markets was subdued in the week ended Tuesday November 19, with low buying interest pushing the Shanghai premiums lower, while both United States and European market participants are now turning their attention to long-term supply contract negotiations.
Arbitrage loss, subdued buying appetite pressures Shanghai premium European market sees less tonnage in long-term negotiations Labor strikes prompt concerns for US production Low trading activity continues to weigh on Shanghai copper premiums The Shanghai copper premiums, both on a cif and bonded basis, continued to fall amid the lack of buying interest in the week to Tuesday November 19. Fastmarkets assessed the copper grade A cathode premium, cif Shanghai at $62-73 per tonne on Tuesday, down by $2.50 per tonne at the midpoint from $65-75 per tonne a week prior. Subdued spot interest was attributed to a confluence of diverted attention toward annual supply negotiations and a persistent import arbitrage loss for material brought into China. "There is low buying interest at year-end as people are busy with annual contracts," a Shanghai-based trader told Fastmarkets. "The arbitrage loss is narrowing a bit, but buying interest remains low...