Asia copper premiums rise

Print this page Posted on : 02-14-2009 by recycleinme.com

Singapore, Feb. 13

Copper premiums in South-East Asia rose in February as merchants picked up metal to sell at a profit in China. Copper premiums in Singapore rose to $75-90 a tonne above the London Metal Exchange cash price, up from $60 in mid-January, after speculative buying in China drove domestic prices higher, creating an arbitrage opportunity.

''It's not surprising premiums are picking up. Speculators have been buying commodities and equities in China in the past few weeks anticipating, wrongly in my view, that the government stimulus package will boost demand,'' a dealer in Shanghai said. ''If you are a physical trader and want to get rid of metal, now is the time to do it,'' he added. Shanghai copper prices have rallied 20 per cent since the start of the year, while London Metal Exchange metal has only gained 13 per cent, allowing merchants to profitably import metal from the international market to sell in China.-Reuters

Source : Business Line