Copper consumers mull contract renegotiations
Mar 19, 2013 | 04:06 PM
| Suzy Waite
NEW YORK Low copper cathode spot premiums have encouraged consumers to consider renegotiating their 2013 contracts, sources said.
AMMs spot copper premiums decreased to 4.5 to 5.5 cents per pound on Feb. 12 from 5 to 6 cents previously.
One consumer told AMM that he locked in 2013 contracted material at higher numbers than those available in the spot market currently, putting spot material at a premium of 5 cents per pound.
Were seeing some pretty low premiums, and the metal weve locked in on annual (contracts) is higher than whats on offer for spot, the consumer said. So were looking for opportunities to buy some spot and get out of our contracts, or at least decrease the quantities. If theres cheaper (metal) out there, why buy the expensive material? ....
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