US copper cathode buyers await imminent Codelco premium

Nov 19, 2010 | 08:39 AM | Meredith Mazzilli

Corporacion Nacional de Cobre de Chile (Codelco) could set its U.S. copper premium for 2011 as early as Friday afternoon amid expectations that the news will prompt consumers to sign 2011 contracts.

A rise of at least 1 cent in copper cathode premiums is in the cards for 2011, market participants agree, but many are waiting to hear from the Chilean miner before pulling the trigger on annual contracts.

Codelco premiums could be set late Friday or early Monday, after which all cathode deals should start to fall in line.

"The reason nothing is happening with cathode is that Codelco has not set the price for the USA," one domestic trader told AMM.

As negotiations for 2011 kicked off informally at last week's American Copper Council fall meeting in Miami, Fla., the market seemed in general agreement that producers are seeking cathode premiums that are between a 1 cent and 1.5 cents higher than the 2010 range of 5 to 6 cents.....

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