SHANGHAI, Oct 9 (SMM) – Chile's Codelco, the world's largest copper producer, has agreed a premium of $88/mt for 2020 copper cathode supply with some Chinese buyers, SMM learned.
The annual benchmark, on a cif Shanghai basis, is the same level as for 2019, but much higher than the average for spot trades so far this year.
Most Chinese consumers told SMM that they may cut their purchase volumes under long-term contracts, in view of relatively high benchmark premiums.
Codelco also kept its copper premium to European buyers for 2020 supply unchanged from 2019, at $98/mt cif Rotterdam.
Its US copper premium climbed to 3.1 cents/lb for 2020 supply, the highest since 2016, as freight charges rose.