The US Midwest copper premium in the United States has risen by a half-cent, with freight costs propelling the market to a nearly four-year high.
American Metal Market's assessment of the US copper cathode premium rose to 6.5-7 cents per lb delivered to the Midwest on Tuesday June 19, the highest level since mid-July 2014. This marks the second upward move since late May, when the premium also logged a half-cent gain.Throughout the year, transportation costs - particularly long-haul trucks - have risen to astronomical levels, with spot rates up 30% year on year in some locations. The confluence of increased regulations, difficulty finding truck drivers and costly fuel surcharges are all squeezing the entire supply chain and forcing the premium higher. Consumers were resisting the higher premium at the beginning of the year due solely to freight and logistics costs, but they later relented and have even begun announcing their own price increases...