Chilean copper producer Codelco is pursuing a significant hike in its annual premium for refined copper supplies to Chinese customers, driven by concerns that a rush of shipments to the U.S. could soon create shortages in other global markets.

According to informed sources, Codelco has offered some buyers a premium of $350 per ton over London Metal Exchange (LME) prices for 2026 annual contracts; another source noted some buyers received an offer of $335 per ton. Codelco’s offers typically set industry benchmarks, so a $350 premium would represent a dramatic increase from the $89 per ton agreed for this year. Spot premiums for copper delivered to China have stayed low for most of the year, currently below $40 per ton.

The soaring annual fee reflects heightened competition as traders prepare for potential U.S. tariffs—President Donald Trump is scheduled to revisit duty plans next year. Earlier this month, sources revealed major trading houses were paying high spot premiums to Chilean prod...