SHANGHAI, China — 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 Bulletin.

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.

Codelco’s 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.