CODELCO to Reduce Japan Copper Ingot Premium by US$ 13/t

World largest copper producer, Corporaci?n Nacional del Cobre de Chile (CODELCO) noticed to Japanese buyers including electric wire makers the firm reduces the Japan copper ingot premium by US$ 13 to CIF US$ 102 per tonne for 2008 shipment. The premium has kept more than US$ 100 despite of the first drop in 3 years under slower demand. CODELCO also reduces the premium for South Korea and Taiwan. CODELCO decides the premium, which is extra charge on copper ingot price at London Metal Exchange, for each area depending on demand condition. Japanese copper industry uses the premium as indicator for long term contract between smelters and users including electric wire makers and rolled copper makers. CODELOCO decided in early October the firm reduces the premium for European buyers by US$ 10 to US$ 115 per tonne at CIF Rotterdam. The firm informs the US$ 13 reduction to US$ 102 to Japanese and Taiwanese buyers. The firm reduces the premium for South Korea by US$ 16 to US$ 99. With lower premium, Japanese smelters should reduce the premium for the users for 2008 shipment. However, the smelters are suffered from higher concentrate price cost pressure. Pan Pacific Copper tires to revise the certain service for users to cover part of the higher cost.