The United States copper premium continued to rise in the week to Wednesday August 4 and the Shanghai copper premium also rose due to a high import appetite despite arbitrage losses, sources told Fastmarkets.
US copper premium range widens upward
Fastmarkets adjusted its
copper grade 1 cathode premium, ddp Midwest US to 8-9 cents per lb, the highest assessment in over a decade.
This reflects a widening of the range from 8-8.5 cents per lb the week before. Market participants agree that the tightness has been caused by disruptions in shipments rather than a shortage of copper.
One market participant said that they would assess the copper price in the 8.5-9 cents per lb range because it is "cautiously tight."
"There is a little tightness now, but there is [production] capacity so the shortage will not last," another source said. "It is time delays, more than product delays." The...