Yangshan Copper Premiums Rise after Stabilizing for 2 Months, SMM Reports

SHANGHAI, Sep. 2 (SMM) – Yangshan copper premiums registered the first increase on Sep. 2 since Jun. 24, Shanghai Metals Market reports. 

On Sep. 2, Yangshan copper premiums rose to $48 per tonne after stabilizing at $45 per tonne for more than two months, according to SMM data. 

“The rise is due largely to dollar-denominated deposit and loan business, and rising SHFE/LME copper price ratio,” SMM copper analyst says. 

At present, traders are able to buy and sell warrants by making dollar-denominated deposit and loan business, with earnings rate of more than 2‰, and this has speeded up the circulating of warrants, which will support Yangshan copper premiums in the short-term. 

Moreover, the SHFE/LME copper price ratio has increased over this past week, and spot import losses have narrowed in response, and on Sep. 2, the losses fell to around 200-300 yuan per tonne, according to SMM data. 

“The two factors will support Yangshan copper premiums in the short run, but the positive impact is expected to limited as downstream demand in China shows no substantial improvement,” SMM expects.  

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