Bloomberg News

Copper Fees Said to Climb in Europe as Lower Prices Spark Orders

March 28, 2013

The premium copper buyers are being asked to pay in Europe climbed this month as low prices helped spur demand, according to four traders with direct knowledge of the market.

The fee is $90 a metric ton, according to the midpoint of the estimates from the traders, who asked not to be identified because they aren’t authorized to speak to the media. The midpoint fee was $60 a ton in the first week of March.

Copper prices have dropped 3.8 percent 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, they said.

The range for the fee is $80 to $100 a ton, compared with $50 to $90 a ton 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 $80 to $85 a ton for copper warrants, certificates giving the bearer ownership of metal stored in LME-approved warehouses in Rotterdam, Europe’s biggest port, according to four traders. The fee, which doesn’t cover insurance or shipping, was $65 to $70 a ton in February.

To contact the reporter on this story: Agnieszka Troszkiewicz in London at atroszkiewic@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


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