Codelco seen cut­ting cop­per pre­mi­ums

The Pak Banker - - Front Page -

SAN­TI­AGO

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.

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