UPDATE 2-Codelco keeps 2015 copper premium flat in Europe - sources
* Codelco offers European 2015 term premiums at $112/T
* Market expects flat or slight fall in premiums in China
* Negotiations to take place during LME Week next week (Adds Codelco response, reaction, background)
By Harpreet Bhal and Polly Yam
LONDON/HONG KONG, Oct 13 (Reuters) - The world's top copper producer Codelco will offer its customers in Europe premiums of $112 per tonne in 2015, unchanged from last year, reflecting weak market conditions due to poor demand and rising supply, sources said on Monday.
The flat premium - paid above the London Metal Exchange (LME) cash price to cover physical delivery costs such as transport and insurance - raises expectations that the miner might offer flat, or even slightly lower, term costs for its biggest buyer China in 2015, the sources said.
Chinese customers paid $138 a tonne for 2014 deliveries, the sources with direct knowledge of the matter said.
Chinese and foreign banks have tightened credit conditions in the copper trade in China since June, when an alleged scam came to light at Qingdao port involving metal being used multiple times as collateral for loans.
The restrictions mean small importers in China are reluctant to commit to 2015 term shipments. Continuación...