China Copper Premiums Jump, As Bar, Wire Prices Improve

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Chinese traders were quoted saying “Chinese copper premiums (the cost of physical copper over and above the benchmark futures prices) have more than tripled since the start of the year to a high of more than $200 a tonne,” according to the FT.

“Premiums have further been boosted by several technical factors. Queues to withdraw copper from LME warehouses in Malaysia have increased the value of available physical metal, while new regulations from Beijing clamping down on the use of copper to obtain credit has led some traders to boost imports,” Jack Farchy wrote.

On our copper price index, rising 1.1 percent, the Japanese copper cash price experienced the biggest change for Thursday, August 15. The price of US copper producer grade 110 rose 0.8 percent. The price of US copper producer grade 122 inched up 0.8 percent as well, while US copper producer grade 102 rose 0.7 percent.

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Chinese copper prices were mixed for the day. Chinese copper bar prices inched up 0.1 percent. The Chinese copper cash price finished the market day up 0.1 percent per metric ton. Chinese copper wire finished the day up 0.1 percent also. The price of Chinese bright copper scrap continues hovering statically for the fifth day in a row.

The 3-month price of copper changed direction with a 0.2 percent drop. After two days of improving prices, the metal finished at $7,300 per metric ton on the LME. Weakening prices followed two days of improvement as the primary copper cash price dropped 0.1 percent on the LME to $7,272 per metric ton.

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