Copper Premiums in China Slump by a Third on Prices

Copper premiums in China, the world’s largest consumer, dropped by a third in the past week as the metal’s rally to the costliest in more than 27 months discouraged purchases by end-users.

Premiums paid by Chinese importers over the London Metal Exchange cash price dropped to around $80 a metric ton on a cost, insurance and freight basis to Shanghai, said Zhu Shiwei, an analyst at Yong’an Futures Co. That’s about 33 percent lower than $120 a ton quoted at the beginning of the month, he said.