NEW YORK Copper spot
activity may pick up this year after consumers booked less
material on contract for 2013, traders and consumers told
Consumers were unwilling to lock
up 2013 material late last year as the demand picture remained
amm.com, Nov. 30), and sources said that their
continued reluctance could lead to more spot activity this
One trader estimated that
consumers booked only 60 to 70 percent of their needs on
contract for 2013 vs. 70 to 80 percent in 2012. "Last year,
(consumers) were left with a lot more inventory than they
needed, they were consistently financing and rolling over and
asking for cancellations. This year, theyre being more
cautious," he told AMM. "I know a few consumers are
(still) working their way through last years inventories.
... Going into February or March, (they) will start to look at
bringing in more metal."
"People overbought and there was
a hangover in 2012. In November, no one really got anything
done. (But) I dont think its going to be the same
thing this year," a second trader said. "(Consumers) may buy
"People have cut back (contract
purchases). Its going to be interesting this year," a
consumer told AMM.
A second consumer said he was
able to negotiate a range for how much cathode he takes each
month, giving him more flexibility in a market where the 2013
demand picture remains unclear.
Spot business remains slow for
the moment, which has kept AMMs copper premiums
in a range of 5 to 6.5 cents per pound.
"It continues to be quiet.
Weve seen no real change in business in the U.S. in
particular for 2013 over the past couple of weeks. Theres
very little buying. Our phones arent ringing," a third
Consumers confirmed that the
market has been quiet but noted that it was still early in the
year, and business doesnt usually pick up until
"Theres not much now, but
its still kind of early," the second consumer said.
However, not everyone expects
demand for copper to increase this year. "Were expecting
demand to be off in 2013," a third consumer said.