SHANGHAI, Sept. 22 (SMM) - Yangshan copper premiums fell last week from a high level of $122.5 per tonne, to average at $110 per tonne on Sept. 18, according to Shanghai Metals Market data.
SMM attributes the decline in Yangshan copper premiums to waning demand.
The drop in LME copper inventories, down 330,000 tonnes from August’s 370,000, coupled with pessimistic outlook for SHFE copper, led to backwardation on LME copper since late August, in turn increasing costs for traders.
When combined with Chinese yuan’s devaluation, copper imports inverted to loss territory, reducing import demand.
Supply, on the other hand, was little changed, SMM points out.
China Customs reports imports of unwrought copper and copper semis were 350,000 tonnes in August, flat at July’s. Copper inventories in bonded zone stay around 480,000 tonnes recently, SMM statistics show.
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