What Fuels Dramatic Increase in Shanghai Copper Premiums? SMM Reports

SHANGHAI, Sept. 25 (SMM) – Spot premiums in Shanghai copper market expanded sharply to 120-170 yuan/tonne on Monday.

SMM attributes the rise to several factors.

Shanghai Bonded Zone Reports Lower Copper Stocks, SMM Says

First, downstream producers are building up stocks actively for upcoming 2017 Chinese National Day holiday (Oct. 1-7).

Second, no large amounts of imported copper have flowed in. Suppliers now have limited stocks on hand.

Moreover, SHFE copper stocks fell another 25,000 tonnes last week, also giving suppliers confidence.

Financial settlement before the holiday also contributed to higher premiums.      

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