These prices are a part of the Fastmarkets base metals price package.

For more information or to provide feedback on this correction notice or if you would like to provide price information by becoming a data submitter to this price, please contact Sally Zhang by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Sally Zhang re: Shanghai Grade A cathode premium, in-whs Shanghai.”

Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.

To see all Fastmarkets pricing methodology and specification documents, go to https://www.fastmarkets.com/methodology.

The post Correction to copper grade A cathode premium, in-whs Shanghai on October 13 appeared first on Fastmarkets.

Market participants are also focusing on the ongoing LME Week in London, which started from Monday October 9, with next year’s supply negotiations kicking off after key producers, including German copper producer Aurubis and Chilean state-owned copper producer Codelco, rolling over their offers of copper premiums to clients in Europe.

No official offer has been made to Chinese customers yet, but the outlook is not optimistic due to tepid spot demand, higher copper production in China and high financing costs, sources told Fastmarkets.

Chinas copper market

Chinese market participants returned from the week-long National Day holiday on Monday, with increased spot trading due to favorable import terms, supporting the premium. Prompt arrival units were particularly well sought after, sources said.

“Offers surged on the first working day [after the holiday], and inquiries were also brisk, with spot deals concluding in the high 60s to low 70s [per tonne] for grade-A copper cathodes,” a Shanghai-based trader said.

A second Shanghai-based trader added, “Some spot buying came in after weaker copper prices on London Metal Exchange, which was trading sideways at $8,000 per tonne, but some also stayed back amid the expectation of continuous declines in copper prices.”

Fastmarkets assessed the benchmark daily copper grade A cathode premium, cif Shanghai at $55-73 per tonne on Tuesday, up from $52-68 per tonne a week earlier.

Fastmarkets assessed the copper grade A cathode premium, in-whs Shanghai, at $55-75 per tonne the same day, against $50-70 per tonne a week prior.

The Shanghai equivalent-grade copper cathode market also ticked higher due to improved trading sentiment, sources said.

Fastmarkets assessed the weekly copper EQ cathode premium, cif Shanghai, at a premium of $30-35 per tonne on Tuesday, against a premium of $20-30 per tonne on a week earlier.

Elsewhere in the Southeast Asian copper market, some liquidity was seen, but spot demand remained largely quiet, with focus also gradually shifting to the annual supply talks.

Fastmarkets’ weekly assessment of the copper grade A cathode premium, cif Southeast Asia, was $60-70 per tonne on Tuesday, unchanged from September 19.

US copper market

Fastmarkets assessed the copper grade 1 cathode premium, ddp Midwest US at 7-9 cents per lb on Tuesday October 10, narrowing down from 7-9.5 cents per lb on Tuesday October 3, amid an absence of reported trades, with most sources saying the premium remains under pressure from surplus supply.

The premium dropped sharply in the week to October 3, moving down by 15.38% on lower offers and demonstrating a weakening market.

The premium had previously held at 9.00-10.50 cents per lb since June 27 with many sellers insisting that level was unchanged in the absence of spot activity to alter it.

No sales were reported in the week to Monday, reflecting weak demand, with far lower bids and offers heard than in previous assessments, sources said.

Global copper supply rising

The spread between the copper cash and three month prices on the LME reached the largest contango seen in three decades, at $75 per tonne at the 5pm close on Friday October 6. A wide contango indicates ample immediate supply and suggests poor demand.

New inflows into LME warehouses, including to New Orleans in the US, added 1,100 tonnes of copper on Tuesday morning, bringing total global inventories to 171,525 tonnes, almost double the LME copper inventories at the start of 2023.

“The premium’s down on the high end,” a copper buyer said, adding that they had no need for metal this week.

“China controls copper and very weak demand there is lowering premiums globally,” a seller source said.

Follow all the latest LME Week insights by visiting our dedicated content hub.

The post China copper premium rises after holiday; US premium faces pressure: LME week appeared first on Fastmarkets.

Smelters’ buying level was mainly assessed at the low to mid $90s per tonne, but some participants saw the number below $90 per tonne, with more spot inquiries expected to come in.

Trader sources noted that Chinese smelters were showing increased interest in buying material. The increased demand was coming in part due to smelter expansions, one trader source said.

The trader added that this was leading to some increased buying interest among traders, noting they had seen some buying by traders potentially because they were short of material. One producer source also noted they had seen some traders buying to cover themselves.

The producer source also added that the gap between clean and both complex and blended concentrate was quite wide at the moment, and a number of sources have commented on this growing spread in recent weeks.

In addition, market focus has shifted to the upcoming LME Week in London, to be held during the second week of October. This also contributed to the quiet conditions in the market.

The post Spot copper concentrate TC/RCs down marginally ahead of Chinese holidays: LME Week appeared first on Fastmarkets.

The aluminium import arbitrage prices for September 11 were previously published as -1,998.45 yuan per tonne and -$273.13 per tonne.

These have been corrected to 156.55 yuan per tonne and $21.40 per tonne.

For more information or to provide feedback on this correction notice, or if you would like to provide price information by becoming a data submitter, please contact Sally Zhang by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Sally Zhang re: Fastmarkets arbitrage”.

To see all Fastmarkets’ pricing methodology and specification documents, go to https://www.fastmarkets.com/methodology.

The post Correction to Shanghai aluminium arbitrage calculations for September 11 appeared first on Fastmarkets.

European market weak, quiet

The European spot copper market came under downward pressure during the past week, with weak demand and high financing costs providing challenges. Participants also said that the market was notably quiet.

Fastmarkets’ fortnightly assessment of the copper grade A cathode premium, delivered Germany, fell to $180-200 per tonne on Tuesday, down from $190-210 per tonne on August 8.

Anemic demand in Germany put significant pressure on the spot copper market with multiple sources noting that, paired with high financing costs, the weak demand was causing consumers to sell material back to traders. Traders and consumers have noted that in recent weeks a significant portion of liquidity has involved participants selling stock back to traders.

Sources also noted that participants were trying to delay deliveries or cancel tonnages due to them not needing material.

Beyond some examples of traders buying back from customers, the market was said to be quiet and subdued.

“It is fortunate the football season has started again because the copper market is so boring at the moment,” a trader said.

Multiple sources noted that reduced demand for consumer products like cars from China was pressuring the German industry along with weak demand from Europe.

Fastmarkets’ fortnightly assessment of the copper grade A cathode premium, cif Rotterdam, was $110-130 per tonne on Tuesday, unchanged since July 11.

Participants highlighted that Rotterdam usually serves as a market through which copper is imported into Europe, and due to the weak demand in the continent, Rotterdam continues to be quiet.

Fastmarkets’ fortnightly assessment of the copper grade A cathode premium, cif Leghorn, was $130-150 per tonne on Tuesday, unchanged since May 16, with participants continuing to note quiet market conditions.

Sources across Europe struck a particularly sullen tone in this pricing session, with one source going as far as to say the industry felt similar to 2008, in reference to the global recession, and with sources across the industry noting negative sentiment.

A continued area of positivity in the copper industry, however, is the energy transition with sources noting demand in that sector was still relatively strong.

Registered, non-registered premiums continue to rise in China; SEA market static

Premiums for copper cathode being imported into China continued to push higher in the week to Tuesday, with units for prompt delivery attracting strong interest, supported by improved import conditions, sources told Fastmarkets.

“Market participants tried to seize the import opportunity when London Metal Exchange copper prices were falling, which usually means a higher chance of an opening of the arbitrage window between the LME and Shanghai Futures Exchange,” a Shanghai-based copper trader said.

The LME three-month copper price was at $8,362.50 per tonne at the 5pm close on Tuesday, rallying from a close of $8,199.50 per tonne on August 15, but down from a close of $8,631.00 per tonne on August 1.

The Shanghai-based trader added that China’s domestic copper spot premium remains elevated, and this adds further incentive for participants to import material, especially prompt-delivery units, to take advantage of the domestic spot high premium.

Fastmarkets’ daily assessment of the benchmark copper grade A cathode premium, cif Shanghai, was $45-65 per tonne on Tuesday, up by $17 per tonne from $28-48 per tonne on August 15 and the highest since mid-June.

Correspondingly, Fastmarkets’ daily assessment of the copper grade A cathode premium, in-whs Shanghai, was $45-55 per tonne on Tuesday, up by $7-17 per tonne from $28-48 per tonne on August 15 and also the highest since mid-July.

The smaller increase reflected lower trading in the bonded market compared to the seaborne market.

“Bonded copper with immediate delivery is popular, which means you can make money right after you import them, but I don’t see those kind of units on offer. I guess suppliers are more willing to import themselves rather than sell in spot, reducing spot activity there,” a second trader in Shanghai said.

The premium for equivalent grade (EQ) copper cathodes in Shanghai was also underpinned by improved arbitrage conditions, with the premium moving higher amid low spot availability.

“I bought EQs at the high $20s [per tonne]; it’s not easy to find spot units with August arrival,” a third trader in Shanghai said.

Participants pointed to slower-than-expected copper shipments from Africa amid logistics issues as a reason for the limited availability of spot EQ cathode.

Fastmarkets’ weekly assessment of the copper EQ cathode premium, cif Shanghai, was $20-30 per tonne on Tuesday, against at a premium of $0-10 per tonne on August 15, marking the highest since level mid-June.

Fastmarkets’ copper import arbitrage averaged a loss of $24.23 per tonne over August 16-22, against an average loss of $44.34 per tonne over August 9-15.

Elsewhere in Asia, the Southeast Asian copper cathode market remained static, with low spot liquidity amid slow orders.

Fastmarkets’ weekly assessment of the copper grade A cathode premium, cif Southeast Asia, was $60-75 per tonne on Tuesday, unchanged since July 25.

US cathode premium softens in slow spot market

The copper cathode premium fell in the US after months of low liquidity in the spot market.

Fastmarkets’ weekly assessment of the copper grade 1 cathode premium, ddp Midwest US, was 9.00-10.50 cents per lb on Tuesday, widening downward from 9.50-10.50 cents per lb on August 15.

It is the first movement in the premium since June 27.

The premium has softened in a lackluster spot market, with most buyers meeting their cathode needs through long-term contracts, sources said.

“Our copper numbers have been all over, so the range is a bit wider,” a seller said.

A trader reiterated that “people are not doing spot business, just taking cathode contracts,” adding that business is very slow on the copper scrap side too.

“Many furnaces are down, and they have backed off from buying,” the trader said.

Keep up to date with the latest insights and updates from the copper market with our dedicated copper market insights page.

The post European copper premiums under pressure; import conditions favorable in China appeared first on Fastmarkets.

The first assessment under the new frequency will take place on Tuesday July 4, and it will be published every Tuesday thereafter.

The specifications for the premium, incorporating the proposed changes in frequency, are as follows:

MB-CU-0412 Copper EQ cathode premium, cif Shanghai, $/tonne
Quality: 99.9935% min copper conforming to LME specifications; Ag: 0.0025% max, As: 0.0005% max, Bi: 0.00020% max,Fe: 0.0010% max, Pb: 0.0005% max, S:0.0015% max, Se: 0.00020% max, Te:0.00020% max
Quantity: Min 25 tonnes
Location: cif Shanghai
Timing: Within 6 weeks
Unit: USD per tonne
Payment terms: LC, TT or DP other payments normalized to cash
Publication: Weekly. Tuesday 4pm London time

To provide feedback on this price assessment, or if you would like to provide price information by becoming a data submitter to Shanghai EQ copper cathode premium, please contact Sally Zhang by email at pricing@fastmarkets.com. Please add the subject heading “FAO: Sally Zhang, re: Shanghai EQ copper cathode premium.”

To see all of Fastmarkets’ pricing methodology and specification documents, go to https://www.fastmarkets.com/about-us/methodology.

The post Amendment to frequency of Shanghai equivalent-grade copper cathode premium appeared first on Fastmarkets.

The consultation period for this proposed amendment starts on Wednesday May 31 and concludes on Tuesday June 27.

Fastmarkets is making this proposal in response to feedback from market participants amid increased spot activity and expectations of more spot availability in the Shanghai EQ market, to better reflect market dynamics.

The proposed increase in frequency will take place from July 4, subject to the outcome of this consultation.

The specifications for the premium, incorporating the proposed changes in frequency, are as follows:

MB-CU-0412 Copper EQ cathode premium, cif Shanghai, $/tonne
Quality: 99.9935% min copper conforming to LME specifications; Ag: 0.0025% max, As: 0.0005% max, Bi: 0.00020% max,Fe: 0.0010% max, Pb: 0.0005% max, S:0.0015% max, Se: 0.00020% max, Te:0.00020% max
Quantity: Min 25 tonnes
Location: cif Shanghai
Timing: Within 6 weeks
Unit: USD per tonne
Payment terms: LC, TT or DP other payments normalized to cash
Publication: Weekly. Tuesday 4pm London time

To provide feedback on this consultation, or if you would like to provide price information by becoming a data submitter to the Shanghai EQ copper cathode premium, please contact Sally Zhang by email at pricing@fastmarkets.com. Please add the subject heading ‘FAO: Sally Zhang, re: Shanghai EQ premium.’

To see all of Fastmarkets’ pricing methodology and specification documents, go to https://www.fastmarkets.com/methodology.

The post Proposal to increase frequency of Shanghai equivalent-grade copper cathode premium appeared first on Fastmarkets.

After speaking to dozens of major copper market participants, data showed that there was expected to be a net increase of at least 3.4 million tonnes per year of new copper smelting capacity.

This would be a sizeable expansion, even for China, which is already home to half of the world’s capacity to make copper cathodes.

In 2022, China produced 10.39 million tonnes of refined copper, combining both primary and secondary output, according to the International Copper Study Group (ICSG). China’s own National Bureau of Statistics said that the country produced 11.06 million tonnes of refined copper in the year.

“This will not be the final wave of expansion in China,” an executive with a major state-owned copper producer said. “It’s politically correct to invest in copper – it’s green, the country needs more of it, and the projects are easy to finance. [Copper] is a safe bet.”

The most ambitious plans belong to Tongling Nonferrous, which hopes to have three projects completed by the end of 2025, including its 500,000 tpy copper facility in Anhui. This is expected to be the world’s biggest copper smelter, with capacity surpassing 2 million tpy.

But it is not only existing copper producers that are considering a larger stake in the copper sector. There are some in China’s weakened real estate sector, and in export businesses, that are also seeking to diversify by tapping into the ‘green copper’ space.

Over a period of less than six months, Xiamen C&D emerged as a major figure in the copper sector. It is planning a new 600,000 tpy smelter in Liaoning province, shortly after acquiring Xiangguang’s 450,000 tpy copper facility, and is still looking for projects for further expansion, sources said.

A producer source described the situation vividly as “an explosion in copper smelting capacity” over the next four years.

“[But] the main question will definitely be how Chinese smelters will secure the raw materials to ‘feed their new mouths’,” he added. “There are not many new mines in the pipeline.”

Mouths to feed

A net increase of 3 million tpy of primary copper smelting capacity in China would translate to new demand for roughly 12 million tpy of copper concentrates.

But new furnaces in China will not be the only new mouths to feed.

“When you consider the smelter capacity being built outside China – in the Democratic Republic of Congo, India and Indonesia – overall there will be too much smelting capacity chasing too little concentrate supply,” Andrew Cole, Fastmarkets’ principal analyst for base metals, said.

The forecast rise in mined copper supply will be modest in the period 2023-26. Fastmarkets has forecast world copper concentrates supply to increase by 3.165 million tonnes, to 20.882 million tonnes in 2026 from 17.718 million tonnes in 2022, including an allowance for disruptions. Learn more about the outlook for copper in 2023.

“After 2026, the growth in copper concentrates supply will slow dramatically, averaging only 1.3% per year for the next five years,” Cole added. “That will compare with an average of 3.8% per year in 2023-26, and potentially +7.4% in 2024. So, after 2026 is when things will get really tight. Maybe China’s rush to build new smelters now is intended to secure market share before the worst of that tightness hits the market.”

Proactive

While new smelters in the DRC and Indonesia could rely on those countries’ major domestic copper mines, such as Kamoa Kakula and Grasberg, regions without such upstream assets will have to act fast to win the favor of copper miners.

This competition has already started.

Chinese state-owned smelters were unprecedentedly proactive in this regard at an industry conference in April, Fastmarkets understands, showing interest in financing the construction of copper mines, investing in equity and taking stakes in projects, to secure offtake from miners.

India’s Adani Enterprises, with the first phase of its 500,000 tpy copper facility scheduled to start operations in the second half of 2024, is also working hard to secure concentrates supply.

It recently set up an office in Lima, Peru, and has hired local agents to source concentrates from small-to-major suppliers in Latin America. A number of suppliers have already signed Memorandums of Understanding with Adani.

Refined copper’s dynamics

“China will be producing more refined copper and our need to import cathodes will diminish,” the first producer source said.

The country imported 803,854 tonnes of copper cathodes in the first three months of this year, down by 11.4% year-on-year.

China is the biggest consumer of copper and accounts for 40% of the world’s total copper imports, ICSG data showed.

Shanghai has been the most active spot market for the trade in copper cathodes over the past decade, but trading interest has been lackluster so far this year.

Fastmarkets’ benchmark copper premium reached a record low in February 2023, with its lower end hitting a single digit. But the copper grade A cathode premium, cif Shanghai, has rebounded since then to a range of $35-50 per tonne on May 11.

But this was some way behind the contract level of $140 per tonne set by Chilean copper producer Codelco for Chinese clients.

For a forward-looking view of the base metals market and expert analysis to help inform your trading strategy, visit our base metals price forecasts page today.

The post China rushing to invest in new copper smelting capacity – but where’s the raw material? appeared first on Fastmarkets.

Asian market remains quiet

Import conditions remained unfavorable for Chinese market participants in the week to Tuesday, February 21, but there was still some spot activity concluded slightly higher for copper cathodes with March arrivals.

Fastmarkets assessed the daily benchmark copper grade A cathode premium, cif Shanghai at $12-38 per tonne on Tuesday, February 21, up by $4-10 per tonne from $8-28 per tonne a week prior.

Fastmarkets’ daily assessment of copper grade A cathode premium, in-whs Shanghai was $15-35 per tonne the same day, unchanged from a week earlier.

Overall spot business remained quiet amid a sustained arbitrage loss, which provided no incentives for spot buying, market participants said.

“The sustained arbitrage loss is keeping most market participants on the sidelines, And there was no notable improvement on the demand side, which also muted spot activity,” a Shanghai-based trader said.

Despite a recent rally, the market has remained at a very low level since tumbling from highs in November 2022, and the current low premiums have also discouraged supplier spot sales, Fastmarkets understands.

“The market is in [such] a condition that buyers don’t want to buy and sellers don’t want to sell either. All are waiting for a clearer picture in March,” a second trader in Beijing said.

Fastmarkets’ copper import arbitrage calculation was at a loss of $202.49 per tonne on Tuesday, compared with a loss of $146.83 per tonne a week earlier.

Big arbitrage losses also muted spot trading in the non-registered copper cathode market, but its discount shrank amid very limited spot availability, market participants told Fastmarkets.

“There are some supply issues from Africa due mainly to logistical issues, supply disruption, etc, so spot supply is tight and preventing the market from falling further despite the lack of demand,” a third trader in Shanghai said.

Fastmarkets’ fortnightly assessment of the copper EQ cathode premium, cif Shanghai, was at a discount of $10-30 per tonne on Tuesday, against a discount of $20-40 per tonne two weeks earlier.

In the Southeast Asian copper market, spot business was still mostly quiet, with supplies of non-registered copper cathodes also tight.

Fastmarkets’ weekly assessment of the copper grade A cathode premium, cif Southeast Asia was $75-95 per tonne on Tuesday, widening upward from $75-90 per tonne the previous week.

Europe premiums remain stable

European premiums were broadly stable in the week to Tuesday, following multiple sessions where prices moved dramatically.

The start of 2023 saw the commencement of far higher long-term contracts, around 85% higher year-on-year. And for the first sessions of 2023 material purchased on 2022 contracts was providing liquidity for the lower end of the market.

Trader sources, however, said that most material from 2022 has now been “snapped up,” meaning that prices are starting to normalize to new long-term levels.

Despite lower amounts of 2022 material being around, sources said there was still a market for material below the 2023 annual levels, in all three assessed markets.

Fastmarkets assessed the copper grade A cathode premium, delivered Germany at $180-260 per tonne on February 21, widening upward from $180-250 per tonne on February 7.

The market in Germany ticked up due to continued liquidity above $250 per tonne.

The market in Germany benefited from stable demand from “electronics, automotive and energy transition-based demand” according to one market participant. Still, construction continued to be weak, due to continued high interest rates, several trader sources told Fastmarkets.

Despite the lack of 2022 material, the lower end of the delivered Germany market continues to be present with the liquidity highlighting the fact there is a market for material around $200 per tonne. But one trader source said that “less material was available at low levels [of around $200 per tonne]” and added that not much business at all was being done below $200 per tonne.

Fastmarkets’ fortnightly assessment of the copper grade A cathode premium cif Leghorn remained at $150-180 per tonne on February 21.

Fastmarkets was told there was no liquidity in the Italian market, but market participants said there had been an uptick in interest in the region.

“We had a few fresh inquires for Italy,” a trader source said, having highlighted the quietness of the market in Italy during the previous pricing session.

A number of sources attributed the uptick in demand to a slight increase in demand from the construction sector, which although still sluggish, was seeing increased activity.

The uptick does not, however, mean demand is now strong, and “not much is going on”, several market participants told Fastmarkets.

Fastmarkets’ fortnightly assessment of the copper grade A cathode premium, cif Rotterdam was unchanged at $80-120 per tonne on February 21.

Rotterdam remained quiet with no liquidity reported to Fastmarkets. One trader source said that, despite a belief that prices are likely to “move up closer to long-term contract levels,” no such upward movement had been seen.

US market watchful of supply and demand

The copper grade 1 cathode premium, ddp Midwest US was stable at 10-12 cents per lb on Tuesday, February 21.

It has been in this range since October 25, 2022.

The spot market was reported to be quiet, with production continuing as planned and buyers meeting their cathode needs under long-term contract quotas and staying away from the spot market.

“There is no spot business, people are still [working] with their January and February quotas,” one trader told Fastmarkets.

“It is early in the year. People are working through their year-end inventory; you would not expect a lot of spot business because everyone is contracted,” a buyer said. He added that, currently, there is no demand outside of what buyers have already planned and contracted for.

Traditionally, March is the busiest month in the first quarter with buyers assessing their future needs outside of their long-term contract quotas as they get ready for the second quarter starting in April, according to the trader.

However, some market participants reported being watchful of developments on both the supply and demand sides.

The trader said that spot business activity in the second quarter will depend on maintenance work at Rio Tinto’s Kennecott smelter in Utah from April to June and whether the shutdown extends beyond the planned period.

While the company has been building inventory to meet the needs of contracted customers during the shutdown period, the closure of one of only two primary copper smelters in the country could become problematic for spot availability of the red metal if the shutdown was to run beyond June, or if there is a spike in demand.

The trader added that construction activity tended to pick up in warmer months so demand could increase as summer approaches.

Market participants said they were also wary of developments in the economy because that could affect demand.

“It remains to be seen what will happen with the economy, the inflation rate and the US Federal Reserve’s rate increases,” the buyer said.

The post Chinese copper market participants waiting for recovery in demand appeared first on Fastmarkets.

The European refined copper market is continuing to re-adjust to the new reality of higher long-term contracts, sources told Fastmarkets in the two weeks to Tuesday February 7. One trader source said that the big increases had not been seen before and the market was not used to dealing with the implications.

Fastmarkets assessed the copper grade A cathode premium, delivered Germany at $180-250 per tonne on February 7, widening from $190-250 per tonne on January 24.

Traders continued to report liquidity above the current range, but said that such trades were not reflective of the broader spot market.

Some market participants suggested the sudden spike in premiums had caused a rush to buy, which then caused a slight scaling back of premium levels.

Liquidity was also reported around the lower end of the current range, with material purchased on last year’s long-term deals likely to be the reason, sources said.

But they added that, as 2022 material depletes, the lower end of the current range could face upward pressure.

Orders from consumers in Germany were maintaining the momentum in the market.

“We are still optimistic [about the German market],” one trader source told Fastmarkets, adding that there was strong demand from the automotive and electronics sectors.

Fastmarkets’ fortnightly assessment of the copper grade A cathode premium, cif Rotterdam was $80-120 per tonne on February 7, moving up from $70-100 per tonne in the previous session.

Most sources told Fastmarkets that below $80 per tonne was no longer reflective and that fresh liquidity above the previous range supported the move higher — although they admitted the market was still “relatively quiet and hard to read” as of Tuesday.

“I am unclear on Rotterdam,” one source said, because it was less obvious than other markets in the region.

The lower end of Rotterdam premium’s range has moved up quickly so far in 2023, having started the year at $50 per tonne. It now sits at $80 per tonne having previously represented brands that were less sought after than other LME deliverable material. The most recent sessions have seen no liquidity reported for these brands and sources told Fastmarkets there had been only limited buying interest in such material.

The Italian market, meanwhile, was said to be quiet, with limited demand from the construction sector.

Fastmarkets’ fortnightly assessment of the copper grade A cathode premium cif Leghorn has narrowed down by $10 at the top end of the range to $150-180 per tonne, with market participants no longer regarding anything above $180 per tonne as viable.

Sources said that the levels achievable in Northern Europe meant many market participants operating there and in the south would be unlikely to offer material in Italy, unless the market picks up.

While there were offers heard below the current range, such material was not seen as reflective of the market as market participants said the material was moved quickly.

China

China’s import appetite for copper cathodes remained limited in the week to February 7, with buying activity capped by unfavorable import conditions leading to a decline in premiums. There was some pick-up in spot buying in Southeast Asia after the 2023 Lunar New Year holiday, however, which meant the premium there moved up.

Fastmarkets’ daily benchmark assessment for copper grade A cathode premium, cif Shanghai was $8-25 per tonne on Tuesday, down by $5-7 per tonne from $15-30 per tonne a week prior, marking the lowest level since mid-March 2022.

Fastmarkets’ daily assessment of copper grade A cathode premium, in-whs Shanghai was $10-30 per tonne the same day, down by $10 per tonne from $20-40 per tonne the previous week, and also the lowest since mid-March last year.

There were some sell-offs late last week due to the lack of spot demand pushing down the premium, but market sentiment improved slightly from the beginning of this week amid a narrower arbitrage loss, with more spot units on offer, Fastmarkets understands.

“Spot offers increased this week, but the market is not fully recovered yet, with limited buying leaving the premium weak,” a Shanghai-based trader said.

“It’s typically an off-season in January and February, with sustained import losses since late last year adding to downward pressure,” a second trader in Shanghai told Fastmarkets.

The Southeast Asian copper market bucked the decline, however, and a pick-up in spot buying after the 2023 Lunar New Year holiday saw the premium there rise.

“We did some spot business after the holiday, with the number at $80-90s [per tonne], and the market is on the way of recovery now,” a Singapore-based trader said.

A deal heard reported in the region was for copper cathodes exported from China, sources said.

Fastmarkets’ weekly assessment of the copper grade A cathode premium, cif Southeast Asia at $75-95 per tonne on Tuesday, up from $65-85 per tonne a week earlier.

United States

Fastmarkets’ weekly assessment of the copper grade 1 cathode premium, ddp Midwest US was unchanged at 10-12 cents per lb on Tuesday, February 7.

The premium has been at its current level since October 25.

Market participants reported a very quiet spot market with buyers continuing to meet their cathode needs through long-term contracts and refraining from entering the spot market.

Sources also told Fastmarkets that they were wary of possible disruptions on the supply side due to protests in Peru and the upcoming planned outage at the Kennecott smelter in Utah in the US.

“If the strike in Peru continues, it will be a problem,” one trader told Fastmarkets, adding that buyers were now interested in acquiring copper scrap because of the delayed shipments from Peru and Chile.

The existing supply and demand balance has been maintained, however, keeping the US premiums stable, according to sources.

“The market is really balanced,” a second trader said.

“Nothing is going on,” according to a third source, who said that if spot business was to pick up, the market could see higher priced copper in late February or early March “because of [the protests in Peru,].”

The post European refined copper premiums still adjusting to recent rises; China premiums under pressure appeared first on Fastmarkets.