Copper premiums across the globe hit unprecedented levels 

CODELCO has reportedly offered Chinese customers record breaking copper cathode premiums of USD 350/t – though some earlier media reports also noted customers had stated they were offered USD 335/t.

Either way the premiums are incredibly high and follow on from premiums offered to Korea and Europe and add to the trend of higher premiums across the globe.

Chinese premiums are actually even higher than those for Europe and Korea which in itself is unusual.

Premium offers for 2026 have pushed up due to the draw the US market is having for copper. This tightening the rest of the worlds’ markets but also creating the need to counterbalance the arbitrage play with high premiums.

The arbitrage between the CME and LME was most recently at USD 270/t with the gap more significant on the forward curve and the exception that the arbitrage could blow out if copper is tariffed.

Participants across world facing higher premiums; but concerned about tightness

“The market is a mess,” said one trader source noting that many copper producers were saying traders were trying to buy up cathode for next year in order that they can send it to the US.

Source noted that in Europe certainly people were generally keen to secure units noting 2026 would be a risky time to go long.

How long the US will keep drawing copper in is another question all-together ass tariff certainty could put a stop to the pull of material into the US.

China less reliant on Chile imports

The record premiums are significant – but it is worth nothing that China is less reliant on Chilean copper cathode imports than it was in previous year – both because their own production is rising but also as imports from other regions especially the DRC play a larger role. Significant amounts of DRC production is Chinese owned.

This data draws from Benchmark’s Copper Service, including comprehensive forecasts of supply, demand, costs and prices.

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