Codelco raises 2023 copper premium offer to Chinese clients by 33%, sources

Chilean state-owned copper producer Codelco has made a premium offer of $140 per tonne to Chinese copper market participants for its 2023 copper cathode supply, at least two sources receiving the offer told Fastmarkets on Monday, November 7

The new premium – which is charged on top of the London Metal Exchange copper price – is an increase of approximately 33.33% from the company’s $105-per-tonne premium for its 2022 copper supply.

Codelco was unreachable for comment at the time of publication.

This premium increase follows the mid-October hike, in which Codelco raised its 2023 premium offer to European clients by approximately 80% year on year.

China’s import appetite for copper cathodes has been subdued over the past two weeks, despite an early-October surge as a result of improved import profits, which drove the spot premium to an all-time high.

Fastmarkets’ daily benchmark for copper grade A cathode premium, cif Shanghai was at $120-145 per tonne on November 4, compared with the record high of $115-150 per tonne on October 20.

What to read next
The price of tin on the London Metal Exchange has reached highs in April 2024 not seen since 2022, with investors betting on the metal having a significant role in the expansion of renewable energy and for technical purposes, while supply remains uncertain
Nickel premiums stayed flat around the world amid quiet trading in the week to Tuesday April 9.
Stocks of base metals in Shanghai bonded warehouses showed mixed fortunes in March, Fastmarkets has learned
Recent developments in the aluminium industry have provided incremental steps toward the industry’s decarbonization, but green energy sources, inert anodes and end-of-life scrap recycling can offer disruptive advances to achieve this goal, according to Peter von Czarnowski, director of casting technology expansion at Golden Aluminum.
The low-carbon differential for aluminium P1020 in Europe was unchanged in the month to Friday April 5, with market participants reporting decreased interest in low-carbon units.
With excerpts from our quarterly tin round up, we share why we were bullish with our tin price forecast in the first quarter of 2024