Copper - SHMET Import Market Briefing 20171011

Date 10/11/2017 5:08:45 PM Source: SHMET

Premiums for CIF Shanghai stood at $65-$75while that for shanghai bonded warehouse flatted at $70-$78, a continuing component of previous re-stabilization. LME C-3m valued was $53.75C. SHFE Spot/LME 3M arb stayed steadily at around 7.90, with an import gain of RMB625/mt, whilst 3M SHFE/LME arb may lose RMB534/mt, with ratio 7.77.

The appreciation of the RMB affects arbitrage and the import has a profit on the cash month, but the basis structure between domestic market price and foreign market price is not so beneficial to the arbitrageur. The premium quotation is active, which reflects the increasing demand of the domestic market for the imports of copper. Both B/L and Warrant are up 5 dollars from the previous day.

Report by SHMET