SHANGHAI, Apr. 14 (SMM) – Spot premiums for imported copper are holding up at $70-90 per tonne in China after finding support from tightened domestic physical market.
Yangshan copper premiums, published by Shanghai Metals Market daily, have edged up slightly and stabilized in the range after dipping to as low as $65 per tonne on April 4.
Domestic physical copper is now trading at a premium of as high as 600 yuan ($97) per tonne today to the nearby Shanghai Futures Exchange (SHFE) contract, compared to discounts of 300 yuan per tonne in late February.
Market talks abound that as the SHFE April copper contract is expiring and the May contract is being rolled into front contract tomorrow, some companies have been hoarding copper so as to tighten spot availability, making it hard for short-sellers to obtain the metal for delivery.