Chile's Codelco, the world's largest copper producer, plans to increase the premium on the price of this metal for Chinese buyers to a record size in 2026.
The company intends to raise the premium on annual contracts to $335 per ton, Bloomberg reports, citing a source. According to another source, some buyers were offered $350 per ton. A premium to the LME copper spot price is charged to cover the costs of insuring and shipping the metal.
This year's premium is $89 per tonne.
The sharp rise planned for next year reflects renewed competition in the global copper market. The metal shortage has been driven by mine disruptions this year, including production problems at Freeport-McMoRan's Grasberg mine in Indonesia, a slower production recovery in Chile and repeated mine protests in Peru.
As a result, LME copper prices soared to record levels, topping $11,000 a barrel in late October. ton.
Negotiations between Codelco and Chinese buyers took place as part of Asia Copper Week, an annual meeting of industry leaders in Shanghai. Last week, Codelco offered a record bonus of $330 to South Korean customers.
