AG has offered customers in Europe a premium of $105 per tonne
ex-works for copper cathode to be supplied in 2014, up from $86
this year, a company spokeswoman said Sept. 26.
The proposed $19 jump
in 2014 terms corresponds to sustained strength in spot copper
premiums seen in the region throughout the year.
publication Metal Bulletins in-warehouse
Rotterdam copper premiums have held above $100 since the start
of May, when smelter outages, mine disruptions and port delays
caused a temporary supply shock in the European market.
Copper premiums topped
out at seven-year highs of up to $160 per tonne in June, and
were holding at $100 to $140 per tonne Sept. 26.
Nacional del Cobre de Chile (Codelco), the worlds largest
copper producer, agreed to European premiums of $85 per tonne
for 2013, and Aurubis offer, which the Hamburg-based
copper refiner announced to customers Sept. 25, is likely to
strengthen the hands of consumers looking to put an upper limit
on the increase that Codelco is likely to secure for next
premiums for next year come as the global copper market emerges
from a period of oversupply and price weakness that persisted
throughout the first half of the year.
Despite a sharp jump
in mine supply, which has led to a dramatic loosening in the
market for copper concentrates over the past few weeks,
premiums have been supported through the year partly by
warehouse incentives and, more recently, a resurgence in
The global copper
market moved to a 132,000-tonne deficit in June, as Chinese
demand hit its highest level since 2011, according to the
International Copper Study Group (
amm.com, Sept. 24).
Now that Aurubis has
communicated its offer to customers, discussions will turn to
the volumes it will supply under contract next year.
A version of this
article was first published in AMM sister publication Metal