Codelco Seen Cutting Copper Premiums to Chinese Buyers
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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.