UPDATE 1-Aurubis to offer copper term premiums at $86/T for 2013

(Adds detail) By Harpreet Bhal

LONDON, Oct 5 (Reuters) - Aurubis , Europe's biggest copper smelter, will offer 2013 physical copper term premiums for its European customers at $86 a tonne, unchanged from levels set in June this year, a spokeswoman for the company said on Friday.

The figures represent a $4 decrease from premiums of $90 a tonne set by the world's No.1 copper producer Codelco for European customers in 2012, seen as an industry benchmark.

Sources said this week Codelco's 2013 physical premiums for Europe were likely to be held or trimmed by a small amount.

"We wrote to our customers ... last week and confirmed that $86 (a tonne) will also be valid for next year," Michaela Hessling, Aurubis head of group communications said.

Premiums are paid over the London Metal Exchange (LME) cash price to secure physical metal. It covers the cost of freight and insurance, and reflects regional demand and supply.

(Editing by Pravin Char)

((harpreet.bhal@thomsonreuters.com)(+44 0 207 542 4533)(Reuters Messaging: harpreet.bhal.thomsonreuters.com@reuters.net))