Aurubis Holds Copper Premium Steady for Third Consecutive Year at $228/t

Aurubis

Europe's largest copper producer, Aurubis, has announced that it will keep its copper premium at $228 per ton for 2025, marking the third consecutive year at this level. This premium is applied to the official London Metal Exchange (LME) copper price and is based on the fca (free carrier) basis. The price was initially increased by 85% for 2023, driven by higher production costs, energy prices, and elevated freight charges amid tight supply and stable demand in Europe.

This consistency in Aurubis’ pricing strategy reflects the broader stability in the European copper market. Spot market premiums for grade A copper cathode delivered to Germany have hovered around $180-200/t, showing little change from the previous year. Argus' assessment on October 1st confirms this trend, with spot premiums staying largely consistent, indicative of steady demand and constrained supply conditions.

Despite the firm premium, subdued demand in Europe has kept prices in check. Copper consumers remain cautious, anticipating a sluggish 2025 due to weak downstream sectors, particularly in construction. Market participants note that the premium could have been higher, but the slower economic activity has restrained any potential upward adjustment.

Meanwhile, South American copper producers have yet to finalize their 2025 premium agreements with European buyers, with speculation suggesting their figures may fall below Aurubis'. The market remains closely tied to global economic developments, with China’s recent economic stimulus and rising oil prices adding optimism to the copper market. On the LME, three-month copper prices recently surpassed the $10,000/t mark, buoyed by a mix of geopolitical and economic factors.