Codelco offers record premiums for 2026 copper sales to China

Chilean copper producer Codelco is pushing for a massive hike in its annual premium for refined metal supplies to its Chinese customers, highlighting concerns that a rush of shipments to the US may soon create a shortage in the rest of the world.

Codelco offered to supply some buyers at a premium of $350 a ton over London Metal Exchange prices for 2026 annual contracts, according to people with knowledge of the discussions. A separate person said that some buyers were offered $335 a ton.

The Chilean miner’s offers typically set the benchmark for the rest of the copper industry, and a $350 premium would represent a huge jump from the $89 agreed for this year. Spot premiums for metal delivered to China have been trading at even lower levels for much of the year, and are currently less than $40 a ton.

The soaring annual fee reflects renewed competition as traders position themselves for potential US tariffs, with President Donald Trump due to revisit plans for duties next year.

A representative for Codelco declined to comment.

The global copper market has been rocked this year by massive flows to the US as traders tried to front-run import tariffs that were ultimately delayed for Trump to review in 2026. Major trading houses have again been paying huge spot premiums to Chilean producers in order to sell for higher prices in the US market, people familiar with the matter said earlier this month.

A string of mine disruptions and smelter closures has also put pressure on supply, sending LME prices soaring to a record in late-October above $11,000 a ton. But those levels appear to have put off some buyers in China, where fabricators have been struggling with low margins and reluctant customers even in the typical autumn peak season. Copper traded 0.5% higher at $10,826 a ton on the LME on Tuesday.

Talks between Codelco and Chinese buyers were conducted during Asia Copper Week, an annual gathering of copper executives in Shanghai. While the fee offers an annual temperature check for the global market, its importance has waned as China now buys less metal and more raw materials. Last week, a record premium of $330 was offered to Codelco’s South Korean clients.

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