LMEWEEK-Codelco cuts 2016 term premium offer by 18 pct to $92
LONDON/HONG KONG Oct 13 (Reuters) - The world's biggest copper producer Codelco will offer its customers in Europe premiums of $92 per tonne in 2016, down 18 percent from $112 this year, reflecting weaker market conditions, two industry sources said on Tuesday.
The premium is paid above the London Metal Exchange (LME) cash price to cover physical delivery costs such as transport and insurance.
Codelco's premiums are seen as an industry benchmark.
Term premiums are typically negotiated between suppliers and consumers for long-term contracts, and deals are discussed during LME Week, an annual gathering of the global metals industry taking place in London.
Earlier this month, Europe's biggest copper smelter Aurubis said it had cut its premium for 2016 to $92 a tonne. (Reporting by Eric Onstad and Clara Denina in London; Polly Yam in Hong Kong, editing by William Hardy)
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