LONDON The weighted-average copper premium for
Rotterdam, the Netherlands, pushed back above $70 per tonne
Jan. 28 as producers reported modest sales to consumers.
The spread on AMM sister publication Metal
Bulletins Rotterdam copper premiums was unchanged at
$60 to $80 per tonne, but the weighted-average quote increased
to $70.83 per tonne after dipping below $70 in mid-January.
Spot trade in Europe has been slow so far in 2013 and is not
expected to pick up significantly until late February at the
earliest, a producer said. In the meantime, premiums are likely
to trade sideways, he said.
There hasnt been much buying since the end of
the year, but the premiums we have achieved on small sales to
industrial users havent been that bad. I would say $75 is
achievable, the producer said.
Its very hand-to-mouth, but thats to be
expected. The year still hasnt got started yet and I
dont expect the market to really show its direction until
February or March, he said.
While booking more comfortable volumes in contracts for
2013, many consumers also received additional volumes under
contracts that expired in December, a semis producer told
As consumers, on the one hand, we had our December
quotawhich was shipped last month and arrived in
Januaryand on the other, scrap availability was quite
good, he said. So on the raw materials side, the
situation wasnt so bad. But from the order point of view,
things could be better. There is some demand after a period of
destocking at the end, but it is nothing
Other sources said the market is likely to remain subdued
beyond the seasonal lull seen at the start of the
Were trading small tonnages and trying to think
of some new strategies, but its not easy, a source
at a Category I member of the London Metal Exchange said.
Everyone is very risk-averse and theres no real
demand out there. I dont really see it getting much more
exciting than it is now, either."
A version of this article was first published by AMM
sister publication Metal Bulletin.