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KME’s $40/T copper charge sparked by increased costs

Keywords: Tags  copper, surcharge, premiums, KME, Fleur Ritzema

LONDON — KME Group SpA, a leading player in the global copper-processing industry, has introduced a $40-per-tonne copper surcharge on the metal value contained in its products, the Italian company said this week.

The company—the world’s largest manufacturer of semifinished copper and copper alloy products, excluding copper wire—cited higher copper premiums and increased risk and accessory charges.

Physical premiums have risen above $100 per tonne in recent months throughout Asia, Europe and the United States amid a run-up in inventories, as warehouse companies have offered strong incentives to attract metal into storage in Johor, Antwerp and New Orleans, where there are large queues to withdraw copper.

The in-warehouse Rotterdam copper premium published by AMM sister publication Metal Bulletin was at $100 to $140 per tonne June 17, up from $70 to $100 per tonne at the start of the year.

Three-month copper closed the London Metal Exchange’s official session at $7,010.50 per tonne June 18.

PMX Industries Inc., Cedar Rapids, Iowa, also said recently that it would add a copper surcharge to its products after a wall slide at Kennecott Utah Copper’s Bingham Canyon Mine forced it to seek alternative sources of cathode.

A version of this article was first published by AMM sister publication Metal Bulletin.

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