FOCUS: Annual copper rod deals being negotiated for delivery to India for 2017 [CORRECTED]

Some annual copper rod contracts have been agreed between producers in the Middle East and Indian buyers at much lower levels than a year ago, driven by lower cathode premiums, lower Indian domestic 8mm rod premium offers and substitution for duty-free wire from Asean countries.

A few deals were reported for 2017 delivery of 8mm copper and wire rods at premiums of $160-190 per tonne, sold on a Nhava Sheva cif basis. More deals are expected to be inked by the start of the new financial year next month. Premiums are significantly lower than they were last year, which were in the $220-240 per tonne range for annual contracts. Some offers for Brazil 8mm rods were heard around $110-130 levels but there were only a handful of these. Brazilian rod, which has a shipment time of 30-35 days, is considered to be of lower quality than the Middle Eastern material. Indian producers are offering long-term contracts for copper rod at $110-130 per tonne premiums for 2017 delivery; the discounts to large and long-term customers could be higher, Metal Bulletin understands. A major Indian wire maker said he had received offers of $80-90 from Indian producers for 8mm wire...


Shivani Singh

April 21, 2017

05:02 GMT