CODELCO raise European copper cathode premium offers to record levels
CODELCO, the Chilean state-owned copper miner, has reportedly offered their European customers record premiums on copper cathodes at USD 325/t for 2026 – 39% higher than last year’s level – according to sources familiar with the matter and media reports.
This follows on from news last week thatAurubis increased offers 38% for 2026, leaving market sources unsurprised by CODELCO’s offer during LME week.
Sources noted that, with smelters under pressure from negative treatment and refining charges (TC/RCs), as well as the arbitrage between the CME and LME copper benchmarks sustaining, the premium offer increase was a reflection of the market’s underlying fundamentals.
“People want long term, they want that security,” said one European copper producer.
“They [cathode producers] can increase the premium because TCs are increasing and the arbitrage is still a factor and will be for a while,” said a European copper trader.
Sources told Benchmark that despite the increases in premium levels, many participants were still keen to lock in long-term contracts. In fact, multiple European cathode market participants noted that demand for long-term contracts was stronger this year than last.
In addition, low LME stocks in Europe andrecent disruption at Freeport McMoRan’s (Freeport) Grasberg mine in Indonesia– although not a significant supplier to the European cathode market – are adding to perceptions of a tight European cathode market next year.
Last year, long term copper cathode contract discussions were subdued by low premiums on spot sales heading into LME week, but also uncertainty around demand. In contrast, multiple market sources noted that there is now concern in Europe about potential tightness later in 2026.
Matrket sources also reported on Monday that Montanwerke Brixlegg had offered its customers its “BRX GREEN” copper cathodes, sold in Europe with high focus on sustainability at €355/t FCA Brixlegg.
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