Home / Metal News / Precious Metals / China Copper Premiums Stabilize; Supported by Possible Short Squeeze
China Copper Premiums Stabilize; Supported by Possible Short Squeeze
Apr 14,2014 16:34CST
smm insightfeature
Source:SMM
Spot premiums for imported copper are holding up at $70-90 per tonne in China after finding support from tightened domestic physical market.

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.
 

China copper premiums
Yangshan copper premium wrap

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news