Copper cathode lull continues, sellers pin hopes on China scrap demand

Base Metals Investing

Platts reports that the copper cathode business has been left flat by an abundance of copper scrap but that a combination of factors may soon change that.

Platts reports that the copper cathode business has been left flat by an abundance of copper scrap but that a combination of factors may soon change that.

The report is quoted as saying:

A trader summed up the business lull this way: “I didn’t know there was a [copper cathode] physical market.” The trader agreed it would take certain events to breathe new life into the market and in turn, push premiums higher.

“What I anticipate will happen eventually is [scrap consumers] will draw down the available scrap, and the Chinese will come in as well and then there’s going to be no scrap [in the US], and then the cathode market should tighten,” he said.

Click here to access the entire report.

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