Why Sellers Dominate in Shanghai Imported Copper Market? SMM Reports

Published: Aug 01, 2017 12:18 (GMT+8)

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Yangshan copper premiums have been climbing steadily as sellers take the upper hand in Shanghai imported copper market, SMM found.

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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Yangshan copper premiums

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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