Chile's Codelco, the world's largest copper producer, is likely to keep its 2015 European Grade A premium at $112/mt -- the same as 2014 -- sources told Platts this week.
The suggested figure is $112/mt for Grade A copper basis CIF Rotterdam, plus LME cash, one physical trader said.
A second physical trader and a fabricator also said they had been told by the producer that the 2015 figure will be $112/mt.
In 2013 the premium for contract material was $85/mt.
It has been a story of two halves for copper premiums in 2014, with a solid first half and then a drop off over the summer period.
On January 10 this year the Platts European premium assessment for Grade A CIF Rotterdam was at $120-140/mt, plus LME cash. On January 11, 2013, premiums were at $60-70/mt CIF Rotterdam.
Currently Platts has the European assessment at $75-85/mt plus LME cash, unchanged week on week, down from $110-120/mt at this time last year.
Codelco does not comment on premiums ahead of concluding deals with consumers.
The market tends to reveal premiums after an agreed date. Consumers generally have the premiums a long way ahead of public knowledge.
The current outlook for the European physical copper market is somewhat bearish.
"It's concerning, there are no inquiries at all. The market is dead," one broker said this week.
"There seems to be absolutely no interest in spot buying, which is not a good sign," said the fabricator source.
He added, "It seems that premiums have edged lower to a level of $60-70/mt basis CIF Rotterdam. There are no deals done from our side."
AURUBIS SURPRISE
This week, German copper producer Aurubis said it will be setting its calendar 2015 European copper-cathode premium at $110/mt plus London Metal Exchange cash, ex-works, up from 2014's $105/mt for average fixation.
For unknown fixation, the premium will be set at $143/mt.
Aurubis is Europe's largest copper producer, with primary copper-cathode output of 689,000 mt in the nine months to June 30, the first nine months of its 2013-14 fiscal year .
Physical traders were taken aback by the figures.
"It makes no sense to me," said one trader.
An Aurubis spokeswoman told Platts via email: "Several factors have been taken into account -- stock levels, availability of cathodes, market balance, economic growth etc. -- and the premium reflects our market assessment for next year."
Source: Platts |
