Chilean copper producer Codelco has entered a supply agreement with a Chinese customer for 20,000-30,000mt of copper cathode.
Recent media reports indicated that the material would be supplied at a premium of $88/mt over the LME Copper three-month price benchmark, a rate that Codelco has set for its Chinese buyers since 2019. Infact, the volume guidance is also in line with the Chilean’s exports to the company in 2020.
Notably, the Yangshan copper premium, paid by Chinese importers to bring shipments in through the Yanghan bonded warehouse, has fallen to $48/mt, the lowest in the past year and a half.