Premiums rise

US copper premiums crept higher this week, buoyed by rising shipping costs and a lack of available scrap metal, an issue that could keep primary cathode premiums on the rise in the months ahead. "Premiums are moving slightly up because the freight rates are killing us," one Midwest dealer said.
Premiums paid over the COMEX spot market price now stand about 25 percent higher from the beginning of the year, when they stood in a 4.5 to 5.5 cent range. Spreads for Bare Bright copper, often regarded as the highest grade of copper scrap, narrowed to a 5- to 12-cent discount to the COMEX price, from 5 to 15 cents under at the end of the first quarter. No 2 copper scrap, which typically consists of a mixture of wire and tubing with a 96 percent copper content, was quoted at 42 to 48 cents under, in from 55 to 68 cents in March.