Bloomberg reports that Codelco reportedly has promised to cut the premium charged to European customers by 5.6 percent. This premium is added to cost at the LME to cover shipping and insurance, and comes on the heels of copper prices hitting a one-month low.
As quoted in the market report:
Lower premiums are clearly an attempt to incentivize European consumers to contract for more copper next year,” David Wilson, an analyst at Citigroup Inc. in London, said by e- mail. “European demand has been very soft, and consumers seem to be showing a reluctance to contract for much material next year given the gloomy European macro outlook.