Nacional del Cobre de Chile (Codelco) customers in Asia are
more cautious in negotiations for 2013 copper contracts than
they were a year ago, according to chief executive officer
"Weve just completed
market activity in South Korea and Taiwan. Customers are a bit
more cautious, but were satisfied with our progress on
sales for next year," he told AMM sister publication
Metal Bulletin. "There are no big surprises."
Keller refused to discuss the
levels at which contracts likely would settle, noting that it
was a private matter between the Santiago, Chile-based company
and its customers.
"Our initial discussions with
customers in China are very healthy and encouraging," he said.
"The question is by how much demand will grow."
Keller spoke shortly before
buyers in China told Metal Bulletin that term premiums
for 2013 were being offered at levels around $12 per tonne
below those for this years contracts (
amm.com, Nov. 28), noting that he believes two
factors are of particular significance.
"Urbanization in China is going
to stay with us," he said. "We heard this morning that
urbanization in China is not at 50 percent but at 40 percent,
and we need to reach 65 percent." Copper also is required for
new products such as hybrid cars.