Codelco signs multi-year contracts in Southeast Asia

 

Codelco executives. (Reference image by Codelco, Flickr).

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Chile’s state-controlled Codelco, the world’s largest copper producer, said on Thursday it has successfully concluded its sales plan for 2022 in Southeast Asia with the signing of multi-year deals.

The company had announced in July it was seeking to quadruple its sales in the region by 2023 with the opening of an office in Singapore. The miner also expressed interest in the Indian market as it tries to reduce its dependence on China.

Codelco said in a statement sent to Reuters that it has generated positive figures in 2021, while exceeding its sales estimate for the next year and “satisfactorily fulfilling its plan to enter Southeast Asia”.

“We had a plan to increase sales of refined copper in the region and achieved 100% of it for 2022,” Codelco added, without providing details.

The miner also said it was able to “successfully execute” its plans in China, where copper premiums rose by approximately 20%. In Taiwan and South Korea, the increase was even higher than 20%.

The higher prices over contracts traded on the London Metal Exchange point to an outlook of strong copper demand as the global economy continues to recover from the pandemic.

“Our strategy of opening up to new markets going forward was a success, as the consumption of refined copper in Southeast Asia is expected to show a sustained growth for the next 20 years,” Codelco’s Vice President of Marketing, Carlos Alvarado, said.

He also noted that the firm was able to maintain its number of customers while increasing premiums by 30% in Europe.

(By Fabián Andrés Cambero and Peter Frontini)