US copper extras rise on soaring freight costs

US domestic copper premiums moved up for the first time since late January this week amid rising freight rates, costly fuel surcharges and the expectation for further rate hikes from the US Federal Reserve.

American Metal Market’s assessment of the Midwest copper cathode premium rose to 6-6.5 cents per lb on Tuesday May 22 from 5.5 to 6 cents previously. The premium is at its highest level since August 2016., according to American Metal Market data. Multiple market participants said freight costs are rising because the transportation market is entering peak seasonal demand. "There is definitely a strong upward pressure on premiums at the moment," a United States-based trader said. "Freight continues to be a serious challenge...and produce season is only...

Published

May 23, 2018

02:30 GMT

Chicago