CODELCO Holds Japan Copper Export Premium

World largest copper producer, Corporaci?n Nacional del Cobre de Chile or CODELCO is said to inform to Japanese users including major electric wire and rolled copper makers that the firm will increase the export premium of copper ingot to Japan to CIF US$ 115 per tonne for 2007 shipment. The price is flat from 2006 shipment but it has kept over US$ 100 since 2005. The premium increases by 19% for Europe and 2.7% for South Korea when the demand keeps firm in China and worldwide. The premium is additional price on copper cash price at London Metal Exchange depending on the local supply balance in areas including Japan, Europe, South Korea and Taiwan. CODELCO decided to keep the US$ 115 per tonne of premium for Japan as 2006 shipment. The price is still high compared with US$ 47 for 2003 shipment and US$ 70 for 2004 shipment though the premium decreased from US$ 125 for 2005 shipment. CODELCO’s premium influences on the negotiation between Japanese nonferrous smelters and domestic users including electric wire and rolled copper makers for contract price for fiscal 2007. CODELCO increases the premium for 2007 shipment from US$ 105 to US$ 125 for Europe and from US$ 112 to US$ 115 for South Korea.