Aurubis, Europe’s largest copper smelter, has set a record premium of $347 per metric ton for refined copper in 2027, according to three market sources. This marks a 10% increase from the 2026 European premium of $315 per ton. Aurubis declined to comment on the premium but highlighted strong demand expectations for 2027, driven by megatrends such as AI data centers, electric vehicles, and renewable energy projects.
The tight supply of copper in Europe is expected to persist next year, as large volumes have been shipped to the U.S. ahead of potential import tariffs. Albert Mackenzie of Benchmark Mineral Intelligence noted that the premium increase aligns with market expectations, given low treatment charges and ongoing tariff speculation. The rise in Aurubis’s premium may influence other producers, particularly CODELCO in Asia.
Treatment and refining charges, which miners pay smelters to process copper concentrate, have plummeted to historic lows, even reaching negative levels due to overcapacity in Chinese smelters and tight mine supplies. Meanwhile, the benchmark LME copper price hit a record high of $14,875 per ton on September 10 and currently trades around $14,650, up 17% this year.
Supply concerns have been further fueled by low LME copper inventories and the prospect of a strike at Chile’s Escondida mine, the world’s largest copper producer. Two sources reported that a preliminary agreement has been reached between supervisors’ union and company representatives. Additionally, workers at Chile’s Centinela mine have gone on strike after rejecting further contract talks with operator Antofagasta, though negotiations have resumed.