COVID Lockdown in Shanghai Paralysed Local Copper Market While Boosting Premiums in Neighbouring Regions

SHANGHAI, Apr 7 (SMM) - The spot copper market in Shanghai has stagnated as warehousing logistics has been suspended in the ongoing COVID lockdown in the city that reported a surge in asymptomatic infection.

In order to meet production needs, downstream enterprises have been forced to turn to smelters and warehouses in Jiangsu and Zhejiang, which border Shanghai. However, the inventory in Jiangsu and Zhejiang is limited, which coupled with the rapidly growing demand, pushed up local premiums rapidly from 300 yuan/mt before the Qingming Festival.