CODELCO’s Japan Premium Differs by Quays for 2011 Shipment

Corporacion Nacional del Cobre de Chile (CODELCO) announced to Japanese electrolytic copper users the firm sets ingot premium for 2011 shipment arriving at Nagoya, Osaka and Kobe at US$ 112 per tonne. The premium was set at US$ 98 for ingot arriving at Yokohama. For 2010 shipment, CODELCO set the premium at US$ 75 for all Japanese quays.

CODELCO’s premium previously differed for 2009 shipment, US$ 65 for Yokohama and US$ 79 for other Japanese quays including Nagoya, Osaka and Kobe. The latest premium for 2011 shipment differs among Japanese users.

CODELCO’s premium offer is regarded as an indicator for copper ingot long-contract price between Japanese smelters and domestic ingot users such as electric cable makers and copper alloy fabricators. One Japanese smelter commented it is difficult to select which premium as an indicator.