Year-end destocking continues to prolong a downturn in Shanghai copper cathode premiums but US and European markets are unchanged while annual contracts are being negotiated.
Shanghai cif premiums at three month low US annual contracts in focus Large-scale cancellations of European on-warrant stocksShanghai premiums drop to three-month low, bonded premiums stable
Copper cathode premiums on a cif basis in Shanghai continued to decline while low bonded stocks kept the premium on material warehoused there steady.
Fastmarkets assessed the copper grade A cathode premium, cif Shanghai at $58-70 per tonne on Tuesday December 3, down by $2.50 per tonne at the midpoint from $60-73 per tonne a week prior.
The enduring lasting negative arbitrage and a traditionally low season during the final months of the year are weighing on premiums.
The average arbitrage loss was $62.91 per tonne for the week ending Tuesday December 3 compared with an...