SG:Copper fees said to climb in Europe as lower prices spark orders
According to four traders with direct knowledge of the market, the premium copper buyers are being asked to pay in Europe climbed this month as low prices helped spur demand.
According to the midpoint of the estimates from the traders, the fee is USD 90 per tonne. The midpoint fee was USD 60 per tonne in the first week of March.
Copper prices have dropped 3.8% this year on the London Metal Exchange. Some buyers are interested now also because of potential supply restrictions due to a ports strike in Chile, the world’s largest producer, the traders said. Supply of scrap metal is already limited.
The range for the fee is USD 80 per tonne to USD 100 per tonne compared with USD 50 per tonne to USD 90 per tonne three weeks ago. The premium is added to the price of copper cathode, a form of refined metal for immediate delivery on the LME at Rotterdam and includes insurance and shipping costs.
Buyers are being asked to pay USD 80 per tonne to USD 85 per tonne for copper warrants, certificates giving the bearer ownership of metal stored in LME approved warehouses in Rotterdam, Europe’s biggest port. The fee which doesn’t cover insurance or shipping was USD 65 per tonne to USD 70 per tonne in February.
