Copper Premium Said to Increase in Europe After Gain in Orders
The premium that refined copper buyers are expected to pay in Europe increased in the past month on more orders, according to four people who trade the metal.
The premium is about $114 a metric ton in Rotterdam, based on the median of midpoints from ranges given by the people, who asked not to be identified because they aren’t authorized to speak to the media. That compares with $105 last month and $110 in August. The people cited more orders while demand is steady.
The premium ranged from $100 to $140 a ton, compared with $100 to $120 a ton last month. The premium is added to the price of cathode, a form of refined metal, for immediate delivery on the London Metal Exchange. It includes insurance and costs to ship to Rotterdam.
One person cited the range of $105 to $110 a ton, another put it at $100 to $110 and a third at $115 to $125. A fourth trader quoted $130 to $140 a ton. Copper for immediate delivery on the LME settled at $7,154 a ton on the LME yesterday. The metal gained 3 percent last month. Scrap supply is restricted even as higher prices encouraged more supplies, the people said.
Aurubis AG (NDA), Europe’s largest refined copper producer, raised the 2014 premium by 22 percent to $105 a ton, it said last week. Some suppliers of copper started to ask for higher premiums for the metal after that announcement, one person said.
To contact the reporter on this story: Agnieszka Troszkiewicz in London at email@example.com
To contact the editor responsible for this story: Claudia Carpenter at firstname.lastname@example.org