Reuters reported that European copper product demand for physical delivery has remained slack so far in September following the end of the traditional summer holiday period.

Aurubis said that there still has not been any significant upturn on the European copper product markets following the summer break. August copper product orders are traditionally low because so many buyers are on vacation. However, customers are increasingly making product orders for short term delivery so it is still difficult to assess the overall order mood.

The company said that on the European copper scrap market the higher copper prices have led to a higher supply as the current price level is a sell signal for traders. Copper staged 12% price rally in the H1 of September on the back of monetary easing measures announced by central banks in the United States, Europe and Japan but the metal has lost some ground in past days.

Aurubis said that the spot market for copper treatment and refining charges is firm and spot deals between smelters and mines are being made at around USD 70 per tonne and 7 cents per pound compared to USD 63.5 to USD 6.35 cents earlier in the summer. TC and RCs are paid by miners to smelters to refine concentrate into metal and are a key part of the global copper industry's income.

The company said that a situation characterized by cautious smelter demand and a good supply has recently arisen on the copper concentrate markets. Several copper mines in Latin America and Africa had recently increased production.

Source - Reuters

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