Corporacion Nacional del Cobre de chile (Codelco) has agreed to
cuts in contract copper premiums to China of up to $12 in 2013
from $110 this year.
The cuts are broadly in line
with market expectations.
Contract premiums are being
reached with buyers in China at levels of $98 to $100 per
tonne, sources told AMM sister publication Metal
Negotiations are still going on
and are expected to last throughout the week, they said.
Spot copper premiums have been
trading in the range of $35 to $60 per tonne since October.
There has been speculation of a
near-term resurgence of copper imported under financing deals
due to Chinese currency appreciation.
Codelcos premium for buyers in Europe fell by $5 per
tonne to $85 for 2013, and fell by $8 per tonne to $85 for
buyers in Japan next year.
A version of this article was first published by AMM
sister publication Metal Bulletin.