(MB) The premium for grade A copper cathode on a cif Shanghai basis fell to an almost 18-month low on Tuesday February 19 after London Metal Exchange forward price spreads for copper swung into the widest backwardation in almost four years. The LME’s cash/three-month copper price spread moved to a steep backwardation of around $58 per tonne on February 19, after short sellers scrambled to roll their positions in pre-third-Wednesday trading. On February 12, the cash/three-month spread had been in a $15-per-tonne contango. Elsewhere, premiums for copper cathode in the rest of Asia, Europe and the United States were little changed over the past week amid limited spot trading. Shanghai cif premium drops lowest since September 2017 European premiums unchanged; multiple parties bid for Metallo US market flat amid post-holiday lull Shanghai premium slides after LME spreads move into wide backwardation In China, the premium for copper cathode, basis cif Shanghai, slid to its lowest since September 2017 after holders of the red metal looked to offload their tonnages following LME copper price spreads moving into the widest backwardation in close to four years on February 19.
