US market optimistic
- US participants growing more optimistic due to construction figures and freight costs
- Chinese premiums falling due to softening demand
- European premiums flat once again as deliveries soared
US copper premiums were unchanged week on week at 5.25-5.75 cents per lb delivered to the Midwest
, at levels seen since November, but market participants are seeing bullish signals.
"Haven't seen anything change yet, but we have been getting positive signs from the market," one US-based trader said. "Construction really seems to be booming and hasn't slowed down from the weather."
Another big factor is the rising cost of freight, with transportation and logistics costs from a location to the consumer representing one of the largest drivers of US premiums.
Bullish pressure is also coming from the sustained deficit in the global copper market, which stood at 175,000 tonnes in the first 10 months of 2017,...