Grade A copper cathode premiums in China will be well-supported throughout September and October, primarily due to improving downstream demand and declining domestic stocks, Fastmarkets heard on the sidelines of a copper conference held in the Chinese city of Qiqihar on Thursday September 5.
The cif Shanghai and in-warehouse Shanghai copper premiums both rose to nine-month highs on Thursday, with conference attendees telling Fastmarkets that the uptrend will likely be sustained through September and October due to an uptick in demand traditionally seen during those months.
At the same time, a persistent drawdown in domestic stocks over the period amid the increased consumption will provide further support to premiums, they added.
Fastmarkets assessed the copper grade A cathode premium, in-whs Shanghai at $70-85 per tonne on Thursday, marking the premium’s highest level, basis the midpoint of the range, since November 2018. The premium had been assessed at $58-75 per tonne and $50-68 per tonne on August 5 and July 4 respectively.
Similarly, the copper grade A cathode premium, cif Shanghai also hit a nine-month high, basis the midpoint of the range, at $65-82 per tonne on Thursday. This compares with an assessed range of $58-75 per…