The US copper premium remained at a multi-year high this week, with a significant stock cancelation at the LME's New Orleans warehouses failing to nudge it even higher; the Chinese cathode market was quiet before the Lunar New Year holiday and due to a negative import arbitrage.
A total of 25,000 tonnes of copper was freshly canceled in New Orleans on Tuesday and Wednesday but US premiums were unchanged Shanghai copper premiums stable in Lunar New Year lull; arbitrage window remains closed European copper premiums flat on good availability US copper market optimistic for Q1; premiums stable amid cancelations US copper cathode market participants are hopeful that prices will rise over the next few months, with copper scrap spreads narrowing, placing pressure on cathode prices. Fastmarkets assessed the US copper cathode premium at 7-7.5 cents per lb delivered to the US Midwest on Tuesday January 29, up 31.8% from 5.25-5.75 cents per lb one year ago. The premium has held at its latest level - a four-year high - since mid-July 2018. "Spreads on scrap copper have tightened a few cents - the winter dry-up in supply is in process," a US consumer source said....