- Write by:
-
Wednesday, November 22, 2023 - 23:20:40
-
128 Visit
-
Print
Mining News Pro - China’s copper market is tightening with premiums over exchange prices spiking as better-than-expected demand from electric vehicles, solar panels and the power industry draws down inventories.
The Yangshan copper premium, or the fee traders pay for imported cargoes over benchmark prices on the London Metal Exchange, extended gains to $102.50 a metric ton, the highest level in a year, according to Shanghai Metals Market. That compares with just $27 a ton at the start of August. Premiums for domestic cargoes have also surged.
China’s copper market has tightened this year with stockpiles depleting to critically low levels as the renewable energy sector leads consumption higher. It stands in sharp contrast to the situation outside of China, where weak demand and a surplus of supply has driven LME spot prices to a record discount to futures.
That market structure — known as contango — has intensified as stockpiles held in LME warehouses climbed to the highest in two years last month. Meanwhile, inventories at the Shanghai Futures Exchange have fallen to near their lowest since 2009, with holdings at bonded warehouses also at depleted levels.
“The Chinese copper market is tight” as demand from solar, new energy vehicles and the power sector keeps beating expectations, said Wang Yingying, an analyst with Galaxy Futures Co. The profit for importing copper also increased last week, according to Wang.
Still, inventories may soon start rising as demand weakens following recent gains in copper prices and the arrival of overseas cargoes, said Wang.
Copper rose as much as 0.7% to $8,486 a ton on the LME, the highest intraday since Sept. 15, before trading at $8,441 a ton as of 11:10 a.m. in New York. Other LME metals were mixed, with aluminum up 0.8% and zinc falling 0.6%.
Short Link:
https://www.miningnews.ir/En/News/627679
Oxford Economics Australia has released data showing mine maintenance spending may be hitting its peak. But what does it ...
Copper climbed above $10,000 a ton as predictions for tighter global supplies and rising consumption in electric ...
Canada’s mining industry is pushing for an carveout to the federal government’s proposed increase to capital gains ...
Iron ore futures fell to their lowest in more than two weeks, pressured by an inventory accumulation at Chinese ports ...
Copper output in Chile, the world’s largest producer of the metal, edged down in March, data from copper commission ...
Panama’s president-elect has ruled out talks with Canadian miner First Quantum Minerals until it drops multiple ...
Botswana President Mokgweetsi Masisi vowed to protect the country’s interests, including its 15% stake in diamond giant ...
Europe’s largest copper producer Aurubis AG reported first-half core profit above expectations on Wednesday, helped by ...
China issued draft rules on Wednesday to regulate its lithium battery market, after rapid expansion in the sector hit ...
No comments have been posted yet ...