CODELCO’s Lower Copper Premium for Europe to Impact on Asian Buyers

Corporaci?n Nacional del Cobre de Chile (CODELCO) decided to keep copper ingot premium for Europe at US$ 80 per tonne for 2010. The firm apparently reflects the lower spot premium at CIF US$ 50-80 to Rotterdam due to slower consumption. The spot premium is well less than US$ 100 for Asian market. CODELCO could offer same level of premium for Asia for 2010 in mid-October as 2009 shipment.

The CODELCO’s premium decreased by US$ 35 to US$ 80 per tonne for Europe, which is US$ 35 lower than the level for 2008. The premium decreases to less than US$ 100 for the first time since 2004. The firm reduced the premium to US$ 65 for Japan and to US$ 64 for South Korea. After concluded the premium for Europe, CODELCO could offer such low level premium for Asian buyers for 2009.

The premium was US$ 140-150 per tonne for Shanghai market when Chinese copper import was record level in May and June. However, the premium decreases to US$ 50-70 when Chinese import decreases partly due to major holiday for National Day in China.