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

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.