Copper rod consumers in the United States are canceling orders as the Covid-19 pandemic has dampened short-term demand for the commodity.
Fastmarkets assessed the copper rod premium, ddp Midwest US at 16-18 cents per lb on Thursday May 7, down by 1 cent from 17-19 cents per lb previously.
End consumers of copper rod, especially those exposed to the automotive sector, have seen a significant fall in demand, causing some to cancel contractual orders, sources told Fastmarkets.
Suspended auto production due to the Covid-19 pandemic affected the copper rod business in April, sources said, but May is expected to be hit worse.
While many automakers have announced restart dates or even resumed production this month, it will take some time for demand to return to pre-pandemic levels, sources noted.
"Nobody, not one customer is thinking about the copper rod premium right now," a North American copper rod producer said.
"The No1 concern is the economy and when demand will...