Copper cathode premiums in China fell this week amid year-end destocking, a lack of significant spot demand and a persistently closed import arbitrage window between Shanghai and London.
Fastmarkets assessed the
copper grade A cathode premium, cif Shanghai at $42-55 per tonne on Tuesday December 24, down by $8 per tonne from $50-63 per tonne a week earlier. The latest assessment marks the lowest since mid-May.
"It's a typically low demand season at the end of the year. Spot premiums usually move lower during this period, but the declines are steeper this year," a Shanghai-based trader source said.
"Many factors are pushing down the premiums, such as year-end sales, but the biggest factor in my opinion is there's no downstream demand," the trader source added.
He continued that lower offers are out there but there are no buyers, which is really hurting the market.
"No plans to...