LONDON Chilean copper producer Corporación Nacional del Cobre de Chile (Codelco) will offer its European customers a premium of $112 per tonne for copper cathode to be supplied in 2014, sources told AMM sister publication Metal Bulletin.
The premium is 32 percent higher than Codelcos 2013 premium and $7 per tonne above Aurubis AGs offer for 2014.
The worlds largest copper producer is likely to make its offer as early as Oct. 8, the companys customers told Metal Bulletin as LME Week got under way in London.
Codelco wasnt immediately available for comment.
The higher offer goes against some expectations that Aurubis early settlement would effectively cap any hikes in Codelcos premium.
Aurubis, which produces about 1.1 million tonnes of cathode from smelters in Europe, for the past two years has taken a more active role in setting premiums in its home market.
As the larger supplier to the region, its premiums are becoming an increasingly important reference in annual supply negotiations, a large consumer said.
Aurubis premium is also substantially higher than terms seen in 2013, but the Hamburg, Germany-based copper producer has taken a more conservative approach in pricing cathode for next year, a semi-fabricator said.
A version of this story was first published in AMM sister publication Metal Bulletin.