International Comments, ferrous metals and base metals market
Chinese state-owned copper buyers have not accepted Chilean copper producer Codelco’s offer to renew the surcharge for metal deliveries in 2021, three sources familiar with the matter said this week.
The premium, which is paid in addition to the London Metal Exchange (LME) copper prices for the physical delivery of copper cathodes and is a widely observed industry benchmark. Codelco has offered Beijing customers – including China Ordins Group and China Minmetals Corp – the same $ 88 prize for 2021.
The supply is much higher than the current market level.
Although copper imports from China have increased this year, driven by open arbitrage between Shanghai and LME prices following the coronavirus outbreak, another price indicator – Yangshan’s copper premium – has plummeted. Codelco’s bid as “very high” and said the negotiations could be reviewed in a week or two, although he noted that Codelco does not normally change its bid.
Iron ore appears to have stabilized into something like a comfortable balance, with Chinese stimulus spending keeping demand high, but supply from Australia and Brazil is sufficient to maintain a balanced market.
China, which buys about two-thirds of global maritime supplies, continues to import at a rapid pace, and ship and port tracking do not exactly align with official customs data, given the slight differences when cargoes are valued. as downloaded…….
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