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German copper producer Aurubis has increased its copper premium for European clients to $347 per tonne for 2027 contractual supplies, sources told Fastmarkets on Wednesday October 14.
The premium offer is up by 10.2% from the 2026 level of $315 per tonne, marking a record-high annual contractual premium.
Aurubis declined to comment when contacted by Fastmarkets, saying such communications are between the company and its customers.
Copper market participants divided over higher premium
A higher premium was in line with some market participants’ expectations, while others had expected a rollover and some had expected a decline due to slow demand at a higher London Metal Exchange (LME) copper price, Fastmarkets heard.
“[I expected] a light increase, [because] Aurubis had a favorable market environment given the outage of another wire rod plant,” a Europe-based trader said.
A second trader in Europe said they had expected a rollover or a slight decline in 2027’s annual copper cathode premium.
“It’s crazy, I don’t understand, and it’s much higher than spot terms, [considering] subdued spot buying at elevated LME copper prices,” a trader in Singapore said.
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CME-LME arbitrage expectations support premium offer
Arbitrage trading resulting from price differential between LME and Chicago Mercantile Exchange is another reason behind its higher premium offer, some participants said.
“I think there is still CME (Chicago Mercantile Exchange)-LME arbitrage trading expectation, and so far there is no announcement by [the] US government on its copper tariff, and this will leave the game still open, but this is not a reflective number of spot business,” a trader in Shanghai said.
German spot copper premium remains below annual offer
Fastmarkets’ weekly assessment of the copper grade A cathode premium, delivered Germany was $250-280 per tonne on October 6, widened downward from $260-280 per tonne previously.
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