NEW YORK - Copper cathode delivered premiums have fallen as
summer shutdowns and low demand have slowed the market
spot copper premium fell to between 6 and 8
cents per pound July 10 from 7 to 9 cents previously. There
were reports of some sales at slightly higher numbers at the
end of last week, but the majority of business this week
was said to have moved into the new range of between 6 and
Some people are shut down or just barely coming back
(from shutdown) so theres no rush to get material,
a trader said. Its kind of dead. Theres not
very much activity.
Other trader and consumer sources said they hadnt been in
the market for weeks because of slow activity.
We havent done anything in the U.S. market for a
while. We werent making money on it, a second
Sources say demand for copper cathode is low, and queues at the
London Metal Exchange-approved warehouses are long.
A third trader said he has only been able to get material out
of St. Louis, as the queue in New Orleans is too long. U.S.
copper stock in LME warehouses has slowly increased over the
Copper stocks in LME-registered warehouses totalled
214,875 tonnes, according to the LMEs latest report on
July 9, up from 212,550 tonnes on July 2 and 210,575 tonnes on
June 25. Meanwhile, global stock has decreased from 671,100
tonnes of copper cathode at the end of June to 646,000 tonnes
on July 9.
There may be some remaining pockets of demand, a third trading
Part of it is people cant get their hands on scrap
so some manufacturers had to restock on (copper cathode)
because they were running out of scrap, he said.
Copper prices have risen but are still lower than they were in
the beginning of June. Comex copper prices for September, the
most actively traded contract, settled at $3.1775 per pound on
July 11. Before the July 4 holiday, prices settled at $3.1745
per pound on July 3, then dropped to $3.0650 per pound on July
5. A month before that, prices were $3.3715 per pound.