SÃO PAULO Premiums
for Chilean copper delivered to Asia are likely to rise to more
than $100 per tonne c.i.f. as a result of the strike at the
countrys ports, AMM sister publication Metal
Bulletin has been told.
"Regular premiums to Asia are at
$95 per tonne ... there was a bid for 500 tonnes at $112 per
tonne c.i.f.," one trader in Chile said.
"We increased premium levels on
material for Asia to $105 per tonne after the strike," a second
Last month, Corporación
Nacional del Cobre de Chile (Codelco) reported a delay in
shipments due to a dockworkers strike at the Chilean port
of Angamos (
amm.com, March 22).
Other ports later joined the
strike, leaving Codelco to seek other options for exporting of
its copper (
amm.com, March 28).
The Angamos port is used by
Codelco to ship copper from Chuquicamata, the companys
largest project, as well as the Minera Gaby and Radomiro Tomic
mines, according to a report by Chilean newspaper La
BHP Billiton Plcs
Escondida and Spence mines also ship some supplies from
"It is a very difficult
situation and it is getting harder to fulfill commitments.
Premiums are based on urgency. If the strike extends for a long
time, premiums will keep rising," the second trader said.
Copper cathode exports are
likely to be more affected than those of concentrates, as most
companies use private ports to ship concentrates, market
An executive from the Collahuasi
Mine, in which Anglo American Plc and Xstrata Plc each have a
44-percent stake, said the strike isnt affecting
operations as the companies use the private port of
Shanghai copper premiums have
already touched $100 per tonne on tight spot availability.
A version of this article was
first published by AMM sister publication Metal