GLOBAL COPPER WRAP: US copper premium up on financing costs; freight turmoil boosts Asia markets

Copper premiums were up in the United States and Asia in the week to Tuesday December 8 after rising costs of holding and transporting physical material caused deal levels to rise.

  • US premium rises on financing costs
  • Container freight turmoil pushes Southeast Asia, Shanghai SX-EW levels higher
  • Stocks continue to decline in Rotterdam

US cathode premium rises as base price rally increases financing costs
In the US, the copper cathode premium rose in response to rising finance costs due to the consistently high base price of the red metal.
Fastmarkets assessed the copper grade 1 cathode premium, ddp Midwest US at 7-7.5 cents per lb on Tuesday, narrowing upward from 6.5-7.5 cents per lb a week earlier.
The most-active March-delivery Comex copper contract settled at $3.499 per lb on Tuesday, down by 0.5% from $3.5165 per lb the day before.
Similarly, the cash copper contract on the London Metal Exchange closed the official session at $7,635 per tonne on Tuesday, down by 0.3% from $7,656.50 per tonne on Monday.

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Published

Archie Hunter

Rijuta Dey Bera

December 09, 2020

02:47 GMT

London, New York