Chilean Copper producer raises premium due to supply shortage – Commerzbank
According to reports, Chile's largest Copper mine producer plans to significantly increase its premium for key European customers, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes.

According to reports, Chile's largest Copper mine producer plans to significantly increase its premium for key European customers, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes.

Chile’s top Copper producer hikes premium amid supply disruptions

"Sources familiar with the talks report a premium of $325 per ton, which would represent a significant increase on the premium for physical Copper deliveries of around $230 per ton in recent years. The reason for this is likely to be tighter supply after the company struggled with production disruptions."

"This year, the company's output is around 10% below last year's level. In August alone, it recorded a 25% drop in production, which is likely to be due to the production stoppage at the important El Teniente mine following an accident."

"According to the relevant regulatory authority, it will take several months to investigate the incident, so it is unclear when the mine will be able to resume full operations. This is likely to support supply concerns and thus also limit the downside potential for the Copper price in the short term."

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