Sellers have naturally adopted a bullish starting point in preliminary talks, arguing for at least $0.0025 per lb or so higher due to increased freight and financing costs. Buyers, meanwhile, have taken a more bearish perspective, pushing for the same amount lower while noting a well-supplied scrap market and stable stocks.
The end result is the middle-ground rollover effect that most anticipate.
Codelco is offering physical copper contracts in a range of between $0.0225-0.025 per lb at US Gulf Coast ports including Panama City and New Orleans. This is roughly the same as levels achieved for 2017 contracts, copper market participants told Metal Bulletin.
The Chilean producer - which declined to...