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Chile’s Codelco has offered its Chinese buyers a copper cathode premium of $89 per metric ton for 2024, 36% lower than the $140 per ton for this year, two sources familiar with the matter said on Tuesday.
The premiums set by Codelco for physical delivery of copper are paid on top of London Metal Exchange (LME) prices and are sometimes used as a benchmark for global contracts for the metal used in the power and construction industries.
Earlier in October, Reuters reported that China’s largest copper buyers expect to pay a premium of around $90 per metric ton next year.
China accounts for half of global copper demand, estimated at around 26 million tons this year. More than 40% of Codelco’s copper sales go to Chinese customers.