An accumulation of high-grade copper scrap in the United States, following China's recent embargo of the material, has led to a drop in the US copper cathode premium range for the first time in a month.
Elsewhere, positive forward spreads on the London Metal Exchange and ample availability kept Shanghai and Rotterdam premiums steady. Scrap build-up causes US cathode premium to widen downward Shanghai premium stable amid wide arbitrage loss Ample availability caps Rotterdam cathode market US copper cathode premium widens lower on scrap glut, weak demandMuted spot trade in the US domestic market and ample availability of high-grade copper scrap has caused the copper cathode premium to widen downward this week, with the range changing for the first time since June 25.Fastmarkets assessed copper grade 1 cathode premium, ddp Midwest US, at 7-8 cents per lb on Tuesday July 23, widening downward from the previous range of 7.25-8 cents per lb.There is surplus availability of copper scrap due to China introducing a quota system to restrict Category 6 copper scrap imports in a bid to reduce environmental pollution.This feed supply is directly competing with copper...