SHANGHAI, Aug. 1 (SMM) –Yangshan copper premiums have been climbing steadily as sellers take the upper hand in Shanghai imported copper market, SMM found.
Operating Rate to Fall Further at China Major Copper Wire & Cable Producers in August, SMM Expects
Contango on the LME remains high around $ 10/tonne. High yields from bank financing products could cover some capital costs for holding goods on hand. Hence, traders are under no pressure to sell, SMM explained.
Besides, overwhelming bullishness over premium outlook also leaves traders unwilling to sell.
Premiums of warrant goods in spot market have exceeded those under term contracts since two weeks ago. If the SHFE/LME copper price ratio turns favorable, Yangshan copper premiums will probably break through $ 80/tonne this week, SMM estimates.
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