Chinese Term Premiums for 2015 Copper Tracking Lower

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Large Chinese copper smelters have offered term premiums for 2015 exports 7.3% lower than this year as spot premiums stay weak, three trading sources told Reuters on Monday.

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Smelters have offered premiums of about $128 a ton for term shipments of refined copper in 2015, they said. Smelters received a premium of $138 for most term exports this year.

The premium, paid by buyers to the smelters to secure physical copper, is set over the cash London Metal Exchange copper price.

On Tuesday, November 25, the day’s biggest mover was the copper cash price, which saw a 0.9% decline on the LME to $6,731 per metric ton. The copper 3-month price saw a 0.7% decline on the LME to $6,679 per metric ton.

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The price of US copper producer grade 122 fell 0.8% to $3.71 per pound. The price of US copper producer grade 110 declined 0.8% to $3.71 per pound. The price of US copper producer grade 102 weakened by 0.8%, settling at $3.90 per pound. The Japanese copper cash price fell 0.5% yesterday, just off the 30-day high of JPY 823,000 ($6,945) per metric ton it hit the day prior.

Chinese copper closed mixed yesterday. Chinese copper bar finished the day down 0.5% to CNY 48,870 ($7,957) per metric ton. The cash price of Chinese copper fell 0.5% to CNY 49,070 ($7,990) per metric ton. The price of Chinese copper wire declined 0.5% to CNY 48,150 ($7,840) per metric ton. The price of Chinese bright copper scrap remained essentially flat at CNY 42,500 ($6,920) per metric ton.

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