NEW YORK Copper
cathode delivered premiums held steady as business remains
sluggish despite higher demand, according to traders.
delivered premiums for copper cathode remain at 6 to 8 cents
per pound, down from 7 to 9 cents per pound a month ago.
"Theres no real
change or business," one trader told AMM. "Its
kind of dead. Some years we dont get like this, but this
year its more than the typical summer doldrums."
Business should start
picking up again in the second half of August, he said.
Other traders have
switched their focus to copper scrap.
because of the freight costs of copper," a second trader said.
"Its cheaper to go into China than it is to go into the
High demand in China,
the wall slide at Kennecott Utah Coppers Bingham Mine in
April and the allure of warehouse incentives have shrunk the
amount of spot copper available for domestic consumers, a third
The London Metal
Exchanges U.S.-based warehouses held 215,400 tonnes of
copper on July 23, up 2 percent from a month ago.
Despite demand, many
consumers have enough material to last through the summer
through contracts, a copper consumer source said.
While business is
slow, wire mills have the most chance of rebounding.
"Some of the wire
mills are doing better, but theyre going to thinner wire,
which uses less copper," a fourth trader said. "Its
probably very good for the wire users."