Aurubis keeps 2020 copper premium unchanged

German copper producer Aurubis announced today that it will maintain its annual copper premium in Europe for next year.

Aurubis' copper cathode premium for delivery in 2020 will be unchanged year on year at $96/t on an fca basis, the producer said.

This follows Chilean producer Codelco's annual premium offer of $98/t fca in [early October(https://metals.argusmedia.com/newsandanalysis/article/1987472).

"It is quite high given the financial economic condition," one trader said.

Another trader called the level of annual premiums "wishful thinking", which echoed the sentiments of others in the market due to weak demand and an uncertain economic climate this year and next.

Consumers and producers will start their annual contract talks next week at the annual London Metal Exchange Week industry gathering.

Aurubis is Europe's biggest copper cathode producer and the world's largest copper recycler. It sets the copper premium benchmark in Europe.

Aurubis produces over 1mn t/yr of copper cathode, consuming most of this internally to produce copper rods.