Freight costs nudge US copper premiums higher

Price premiums in the United States copper market showed their first upward moves since November on Tuesday January 30, with market participants noting that higher freight and logistics costs were nudging overall costs higher.

The US copper cathode premium inched up to 5.5-6 cents per lb delivered to the US Midwest on Tuesday, the first adjustment since November 21 last year, according to American Metal Market’s latest price assessment.
Although demand on the spot market remains lackluster, the costs of shipping material are continuing to rise. One market participant estimated that freight rates have gone up by at least 25% over the past year, with a dearth of drivers or available equipment playing a significant role in the rise.

Logistics and transportation costs represent around one-fifth...

Published

Dalton Barker

January 31, 2018

02:16 GMT

Chicago