Koperpremie

Koperpremie is a term used in Dutch-language discussions of copper markets to denote an additional amount paid above the base price for copper. It represents the premium attached to securing physical delivery of copper, as opposed to trading a purely financial or paper price such as a futures contract or an index price.

What it covers

A koperpremie can apply to various copper forms, including refined copper (cathodes), copper concentrates, or copper scrap, depending on market conventions. It is typically quoted as a monetary amount per unit of copper (for example per tonne or per pound) and may appear as a regional or contract-specific figure. The premium can be added to a benchmark price, such as the LME or a regional price index, to arrive at the total price paid by the buyer.

Drivers

Premiums arise from several factors. Immediate or near-term delivery needs, logistical constraints, and higher carry or storage costs can push a premium higher. Differences in quality, form, or origin (for example, refined copper versus concentrate) also influence the premium. Market tightness, geographic scarcity, and financing costs during funding and inventory holding can cause premiums to widen or narrow over time.

Use in markets

Buyers, such as manufacturers and smelters, may be willing to pay a koperpremie to ensure prompt delivery or to secure material with specificquality characteristics. Sellers quote the premium to reflect the costs and risks of delivering physical metal. Premiums can fluctuate with supply and demand dynamics and with changes in transport and processing costs.

See also

Commodity premium, base price, LME copper, copper concentrate price, copper scrap.