Codelco seen cutting copper premiums
Codelco the world’s largest copper producer, will probably reduce the premium charged to Chinese buyers for a second year as increasing domestic production lowers demand for imports.
The fee may drop to $100 a metric ton in 2013 from $110 this year, according to the median of 11 estimates from executives, analysts and traders compiled by Bloomberg. The amount is added to the price of immediate-delivery copper on the London Metal Exchange to cover costs such as shipping and insurance. Codelco cut the fee to $85 from $90 for European clients, said two people with direct knowledge of the matter.
Imports by China, the world’s largest user, are set to fall next year as smelting and refining capacity rises, outpacing growth in consumption, according to researcher Beijing Antaike Information Development Co. Goldman Sachs Group Inc. cut its 12- month forecast for copper by 11 percent to $ 8,000 per ton from $ 9,000 because of slowing Chinese demand, it said Oct. 15.