The arrival of off-grade cathode from Africa and non-Grade A units from Russia is contributing to a considerable refined surplus in warehouses and in producers’ yards, while greater scrap availability has also contributed to a build-up in Grade A cathode inventories, market sources told Metal Bulletin.
Metal Bulletin’s
in-warehouse Rotterdam Grade A cathode premium was assessed at $30-50 per tonne on Wednesday July 1, down from $40-60 per tonne in mid-June and $50-95 at the start of the year.
In-warehouse Livorno premiums were assessed at $50-70 on Monday, unchanged from the previous week but down from $80-95 per tonne at the start of the year and $125-160 a year ago.
With the stock overhang increasing and demand slowing as industrial users prepare for summer shutdowns, the spot market is becoming increasingly illiquid and pressure on premiums is mounting, trade sources said.
Copper warrants in European locations are...
