SHANGHAI, Aug 21 (SMM) – Higher import earnings and tight supplies continued to drive up premiums of imported copper over LME copper prices as of Tuesday August 21.
Offers of warehouse warrants for imported cargoes exceeded a premium of $90/mt over LME copper and cif premiums grew close to that level as of Tuesday. This compared with average premiums last week as of August 15 at $72-85/mt. Both notched record highs for this year.
Import earnings remained at 300-400 yuan/mt as of Tuesday, compared with some 100 yuan/mt a week ago. This came after the import window opened on Monday August 13 as the US dollar strengthened.
Copper inventories across SHFE warehouses shrank 3,025 mt on August 21, to 63,656 mt, SMM learned.
Premiums are likely to extend their gains if import earnings grow further, SMM believes.