Singapore, Mar 30: South Korea's LG Metals has signed an agreement to sell its copper cathodes production to three US and European traders in return for some pre-export financing, Seoul-based LG Metals said on Monday.With the exception of one more deal expected to be signed sometime in May or June, all the deals were concluded in February and March this year, ID Kwan, LG's marketing manager said.
The official spoke on condition that the identity of its counter parties remain confidential.
Premiums of these deals ranged between $15-$25 a metric ton above the monthly average cash price on the London Metal Exchange, FOB Pusan or Ulsan, with quotational period the month of shipment. On the wide range of the premiums, the official said: "It depends on the pre-export financing that we obtained from these traders."
In total, some 63,000 tons of its production have been committed under the term arrangements for shipments during the calendar year 1998. LG Metals's exports in 1997 totalled around 50,000tons. In an earlier interview, LG Metals has expressed hopes to boost exports this year in the light of sluggish domestic demand. LG is also targeting to produce some 400,000 tons of copper cathodes this year, up from 270,000 tons in 1997.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
