First Quarter of 2023 in Asia Pacific Copper Plate Prices
North America
In Q1 2023, Copper
Plate prices in the US market rose due to an increase in downstream
construction and machinery inquiries amidst the banking sector's turmoil.
Buyers opted for long-term contracts to meet their needs, avoiding the
relatively quiet spot market. However, market participants cautioned about
potential supply disruptions due to protests in Peru and a planned outage at
the Kennecott smelter in Utah, USA. The delayed shipments from Peru and Chile
led to an increased interest in acquiring copper scrap, but the existing supply
and demand balance kept US premiums stable. The failure of Silicon Valley Bank
had a modest impact on copper prices, and the US Federal Reserve's interest
rate hike in March had little influence. Market sentiment returned to neutral
after the panic subsided. Due to the liquidity strain on several US banks, the
US Fed appears unlikely to tighten monetary policy much in the medium and long
term. Consequently, the Copper Plate (C 11000) prices for Ex Alabama and FOB
Alabama Port were fixed at USD 16884/MT and USD 16957/MT.
Asia Pacific
During Q1 2023, Copper Plate
prices in the Chinese market witnessed an uptrend due to the surge in Copper
futures and a balanced market with limited global copper stocks. According to
market players, Copper began the New Year on a positive note, with funds
returning to the market in anticipation of China's rapid exit from a year of
lockdowns. However, many small and medium-sized cable enterprises downstream
closed for the Spring Festival holiday in January due to the epidemic situation
and off-season consumption. With no apparent improvement in consumption,
downstream replenishment remained weak, and spot market transactions were
scarce. As Q1 progressed, terminals, processing plants, and downstream
businesses resumed production, and orders for Copper plates increased. As the
country entered a seasonal peak consumption season, demand rose, and sellers
prioritized the delivery of long-term orders. In the face of high Copper
prices, downstream companies adopted a wait-and-see approach. Copper prices
increased as market expectations for domestic consumption recovery improved,
but the rise in the US index limited Copper price gains to some extent. As a
ripple effect, the Copper Plate (C 12000) prices for Ex Qingdao settled at USD
8280/MT.
Europe
The European market witnessed a
rise in Copper Plate prices during Q1 2023, attributed to high demand for
refined Copper, low inventory levels on all three exchanges, and a rise in raw
material prices during the banking turmoil. However, some buyers are avoiding
Russian Copper due to heavy stocking in futures warehouses. Europe's tight
supply, uncertainty in demand, and record-high annual contract prices are
likely to affect the spot market. Copper
Rod Prices, which are an economic indicator, were affected by
the recent rout in global markets due to the collapse of Silicon Valley Bank
and Credit Suisse. Producers warn that price volatility due to diminished
inventories poses challenges for traders, producers, and consumers. The recent
surge in orders was due to the significant drop in copper prices rather than an
increase in actual demand from end-users. Buyers reported a continued downward
trend in inventories compared to 2022. Thus, the Copper Plate (CW008A-1 mm)
prices for Ex Drolshagen and FOB Hamburg are fixed at USD 14100/MT and USD
14281/MT.
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