BLBG:Copper Premiums Near Record in China on Postponed Shipments
Premiums for imported copper in China, the largest consumer, remained near an all-time high after delayed shipments crimped local supplies, according to research company CRU International Ltd.
“We’ve heard of a few delays and disruptions to several major suppliers’ shipments to China, which have reduced the availability of high-grade copper,” said Li Chunlan, a Beijing-based copper analyst at CRU.
The premium was at $185 per metric ton today, compared with a record $210 a week ago, according to data provided by SMM Information & Technology Co. Lower-than-expected local output boosted the fees that fabricators paid in addition to London Metal Exchange cash prices, Li said.
Refined copper output in China fell in July to the lowest level in five months because of maintenance in some domestic smelters and tight supplies of imported scrap metal, SMM Information & Technology Co. said yesterday.
Long lines to withdraw metal from LME warehouses in Malaysia and new Chinese regulations clamping down on the use of copper to obtain credit have also boosted the premiums. Copper futures climbed 7.4 percent this month on signs that the economies of the U.S. and China are improving.
Copper for three-month delivery in London touched the highest level since June 6 and was at $7,390 a ton at 3:22 p.m. in Shanghai.
Premiums during July and August didn’t climb above $100 in previous years, said Jiang Ning, a SMM copper analyst, citing Chinese fabricators’ low operating rates during summer.
High premiums might fuel prices on the domestic physical and futures markets and encourage importers to pay more for shipments the next year, Jiang said.
To contact Bloomberg News staff for this story: Alfred Cang in Shanghai at acang@bloomberg.net
To contact the editor responsible for this story: Brett Miller at bmiller30@bloomberg.net
