Chinese importers are buying less spot copper as it becomes more difficult to secure US dollar letters of credit and on sufficient domestic supply, traders said on Friday. This has cut spot premiums and may spill over into next year, with the world's top copper producer Codelco expected to offer a premium of $110 a tonne for refined copper for delivery in 2012.
A $110 premium would be a 4.3 percent cut from the $115 Chinese smelters have paid this year and the low-end of a $110-$115 range that had been expected by Chinese buyers.