Reuters cited Mr Diego Hernandez CEO of Codelco of Chile as saying that the company expects next year's premiums for copper consumers in Asia and Europe to hold steady. Financial market turmoil, economic slowdown and fears of recession in Europe has fuelled market talk of lower copper premiums the amount copper consumers pay above cash prices on the London Metal Exchange. But Mr Hernandez declining to give any numbers said that premiums shouldn't be too different this year. Clients, especially from Asia are quite keen to purchase similar quantities for next year. Europe could see lower premiums. There are more issues in Europe but the quantities being negotiated are not too different from last year. Negotiations with European consumers have already started and in Asia talks will begin in November. Copper premiums for European consumers last year were USD 98 per tonne and for Chinese consumers USD 115 per tonne. Mr Hernandez said that "This year China bought fewer cathodes than in 2010 but if they keep current levels for next year we will be happy. Prices should not fall towards USD 2.50 per lb because fundamentals were good. He said that "You don't have much hope of new copper coming to the market next year. The current copper price doesn't reflect the market. The big issue is what will be the Chinese reaction to current prices when they come back."

Source