Intek’s KME Adds Copper-Product Surcharge as Premiums ClimbAgnieszka Troszkiewicz
Intek Group SpA’s KME Group unit, a maker of copper parts used in cars, refrigerators and roofing, introduced a fee on its products after metal premiums climbed.
The temporary charge, levied on the metal value contained in products, will add $40 a metric ton to prices, Florence, Italy-based KME said on its website yesterday.
“Premiums on copper cathodes have significantly increased worldwide and especially in Europe during the last months,” the company said. “As a consequence of this market scenario, KME is subject to a heavy increase of its costs, risks and accessory charges connected with its metal purchases.”
The premium copper buyers are expected to pay for supplies is the highest since 2006, according to Metal Bulletin data on Bloomberg. The surcharge in Europe climbed in May amid limited availability of the metal, four people who trade the market said this month. Cathode is a refined form of the metal.
Europe accounts for about 85 percent to 90 percent of KME’s sales, Chief Executive Officer Riccardo Garre said in an interview in March. Production of copper and copper alloy products this year will be unchanged at about 435,000 tons after a 10 percent slump last year. The company makes products including tubes, rods, bars and sections.