Codelco offers 2023 copper supply to European clients at higher premium, sources say

Chilean state-owned copper producer Codelco has made a premium offer in the low- to mid-$230s per tonne to its key European clients for 2023 supply, sources have told Fastmarkets

The figure – which is charged on top of the London Metal Exchange copper price – marks an increase of approximately 80% from the premium of $128 per tonne that the world’s largest copper producer offered its European clients for 2022 supply.

An official offer is yet to be delivered to the rest of Codelco’s European clients, Fastmarkets understands. A commercial representative at Codelco said the producer would not disclose commercial details to the public and declined to comment on an inquiry from Fastmarkets regarding premium levels.

Two sources close to the matter told Fastmarkets on Thursday October 13 that the increase in the annual premium level was mainly due to rising costs in logistics and operations.

Codelco’s most recent offer is also higher than the $228-per-tonne level offered by German producer Aurubis for 2023 supply, which itself marks an increase of 85% from Aurubis’ offer of $123 per tonne for 2022 supply.

Upper hand

Copper producers could have the upper hand in 2023 negotiations with the European market expected to tighten once more long-term contracts for Russian units expire at the end of 2022, and with many participants showing caution in financing Russian metal next year.

Germany, the Netherlands and Turkey are traditionally major destinations for Russian cathode.

Spot copper cathode premiums in Europe rose to historic highs in the aftermath of Russia’s invasion of Ukraine in February but have since retreated.

Fastmarkets most recently assessed the copper grade A cathode premium, cif Rotterdam, at $50-100 per tonne on October 4, down from a high of $85-125 per tonne on July 26.

What to read next
The US aluminium industry is experiencing challenges related to tariffs, which have contributed to higher prices and premiums, raising questions about potential impacts on demand. Alcoa's CEO has noted that sustained high prices could affect the domestic market. While trade agreements might provide some relief, analysts expect premiums to remain elevated in the near term. However, aluminum demand is projected to grow over the long term, supported by the energy transition and clean energy projects. To meet this demand, the industry will need to increase production, restart idle smelters and address factors such as electricity costs and global competition.
Read Fastmarkets' monthly base metals market for May 2025 focusing on raw materials including copper, nickel aluminium, lead, zinc and tin.
The Mexico Metals Outlook 2025 conference explored challenges and opportunities in the steel, aluminum and scrap markets, focusing on tariffs, nearshoring, capacity growth and global trends.
China has launched a coordinated crackdown on the illegal export of strategic minerals under export control, such as antimony, gallium, germanium, tungsten and rare earths, the country’s Ministry of Commerce announced on Friday May 9.
Fastmarkets proposes to amend the frequency of Taiwan base metals prices from biweekly to monthly, and the delivery timing for the tin 99.99% ingot premium from two weeks to four weeks.
The US-China trade truce announced on May 12 has brought cautious optimism to China’s non-ferrous metals markets, signaling a possible shift in global trade. Starting May 14, the removal of additional tariffs has impacted sectors like battery raw materials, minor metals and base metals such as zinc and nickel, with mixed reactions. While the improved sentiment has lifted futures prices and trade activity, the long-term effects remain unclear due to challenges like supply-demand pressures and export controls.