Price Bonanza/Mixed Spot Markets and Consumption Patterns

摘要

Consumption patterns and spot markets have remained mixed. That US consumption remains poor will come as little surprise. Stimulatory packages for the economy continue. During March, the Federal Reserve cut interest rates once again-this time by 75 basis points to a base rate of 2.25 percent. The market absorbed the news without major reaction-although many participants had hoped for a full one per cent cut. US housing starts fell once again in February and are now approaching to 30 percent down year-on-year. Future activity is looking no brighter with building permits off more than 35 percent year-on-year, hardly indicative of an immediate consumption turnaround. Wire rod businesses describe volumes as slow on the residential side, but still ticking over. Business in copper cake, used for semiconductor and automotive applications, is described as very weak. Despite the cool general US consumption outlook, spot premiums are steady; East Coast around 6 1/2 cents/lb over COMEX.