Standard cathode famine prompts lofty premiums

摘要

Premiums are still hitting remarkable levels in Europe, where traders have been asking 45-55 dollars/t in Rotterdam, 55-65 dollars/t in Hamburg and 80-85 dollars/t in Italy. More strikingly, some of these numbers could apply for standard cathode, where improved Chilean SXEW qualities, reduced Russian exports and China's huge appetite have conspired to generate an acute shortage. That shortage, prompted by the scarcity of high grade scrap, is driving mills into the market for grade A cathode. Not, it must be said, many mills. European copper demand remains very slack, fabricating margins dismal, and there are even rumours that some rod mills are not using their full contractual offtake of producer copper. Yet semis production trends are not so bad, particularly on the brass mills side. German semis output for the first four months of the year was ahead of the (admittedly appalling) level of the year before. And Italy and France have been slow, but not disastrous.