Codelco hikes copper premium for S.Korea customer in 2022 - sources

By Kitco News / October 26, 2021 / www.kitco.com / Article Link

Oct 26 (Reuters) - Chile's Codelco, the world's largestcopper miner, has offered to supply copper to a South Koreancustomer at a premium of $100 a tonne in 2022, two sources withdirect knowledge of the matter said, a 20% rise from this year.

The higher rates, paid on top of the London Metal Exchangebenchmark copper price , underscore anticipated strongdemand for the metal as the global economy continues to recoverfrom the coronavirus pandemic.

The South Korean cable maker had agreed a premium of $83 atonne for 2021, the sources said, declining to name the company.

One of the sources said the volume of copper to be suppliedto the cable maker next year was around 60,000 tonnes.

Codelco did not immediately respond to a request a forcomment.

The state-owned miner's annual copper premiums, which varyby region, are typically used as industry benchmarks.


Earlier this month, Codelco offered copper to Europeanbuyers for 2022 at a premium of $128 a tonne, up more than 20%year-on-year. The company also sets premiums for buyers in top copperconsumer China, the United States and Asia excluding China,which includes South Korea.


(Reporting by Tom Daly and Zandi Shabalala; editing by PratimaDesai and Marguerita Choy)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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