Washington (Platts)--26Nov2012/235 pm EST/1935 GMT
Codelco, the world's largest copper producer, is rumored to have officially set its 2013 China contract premiums at $98/mt, although selling is being concluded as low as $95/mt, according to sources Monday. Codelco would not comment on the market talk. The bulk of participants contacted by Platts said that $98/mt CIF China was the official line being sold by Codelco, down from $110/mt in 2012. Platts reported October 24 that $95/mt delivered would be the likely settlement. Codelco never comments on premiums ahead of consumers concluding deals with the producer. The market tends to reveal premiums after an agreed calendar date. Consumers generally have the premiums a long way ahead of public knowledge. China is the world's largest copper consumer, sucking up around 40% of global output. It is currently well stocked with material with little demand. Market sources said China currently holds around 750,000 mt of material in bonded warehouses, ex-exchange, although there has been suggestion that as much as 1 million mt could be sat in bonded warehouses. Inventory in Shanghai Futures Exchange warehouses is above 200,000 mt presently. At the end of October, copper stocks stood at 192,761 mt and 162,547 mt at end-September.--Ben Kilbey, ben_kilbey@platts.com --Edited by Richard Rubin, richard_rubin@platts.com