Codelco sets record 2027 copper premium for Europe at $350 a ton

what happened

Chile's state copper producer Codelco is quoting European buyers a 2027 premium of $350 per metric ton, a record, according to two people familiar with the talks, Reuters reported. That is more than 7% above this year's $325. Codelco, the largest copper producer in the world by output, did not respond to a request for comment.

The premium is added on top of London Metal Exchange quotes and is frequently used as a reference in long-term supply deals for copper used in electric vehicles, power grids and construction. The timing, during LME Week in London, adds to signs that buyers expect tighter supply in Europe next year. Smelter Aurubis raised its own 2027 premium by about 10% last week, to $347 a ton, which is also a record for the German company.

The shortage outside the US is linked to expectations of American tariffs on copper imports. Since February last year, when President Donald Trump ordered a tariff study, metal has been flowing into US warehouses, where Comex-approved sites hold around 70% of the world's visible stocks. Comex futures reached a peak of $6.83 a pound on September 22. Supply disruptions, including a deadly landslide this month at Codelco's El Teniente mine, have also kept prices high. LME copper set a record of $14,875 a ton last month and recently traded near $14,380.

why it matters

For physical buyers the premium often matters as much as the benchmark price, so the gap between Europe, the US and Asia shows where metal is scarcest. Higher premiums raise the effective cost of copper in Europe even when exchange prices move little.

market impact

Copper: higher European premiums signal physical metal shortages and support prices

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