Codelco offers US clients copper at record premiums above $500/t over LME prices

Chile’s state-owned copper producer has offered to sell copper at record premiums above $500 a metric ton to US customers with contracts based on London Metal Exchange copper prices, two sources familiar with the matter said.

The premium is paid on top of benchmark LME prices and reflects demand and supply fundamentals. It also covers costs including those for transport and taxes.

Codelco did not immediately respond to a request for comment.

Expectations of shortages partly due to disruptions including accidents at mines in Indonesia and Chile and accelerating demand growth over coming years propelled LME copper prices to all-time highs at $11,200 a ton on October 29.

On Comex, copper prices hit a record $5.8950 a lb or $12,996 a ton on July 24 ahead of an announcement on whether the United States would impose tariffs on imports of the metal used in the power and construction industries.

But refined copper was ultimately given an exemption from the 50% import tariffs that came into force on August 1.

Copper prices on Comex have since receded as levies on US copper imports remain under review. Commerce Secretary Howard Lutnick is due to provide Trump with an update on domestic copper markets by the end of June 2026.

(By Amy Lv, Lewis Jackson and Pratima Desai; Editing by Tomasz Janowski)