TCs for Spot Copper Concentrate Edged Up amid Brisk Trades, Likely to Further Rise

SHANGHAI, Sep 22 (SMM) - As of Friday September 17, the SMM Imported Copper Concentrate Index stood at $62.41/mt, $1.36/mt higher than a week earlier.

Spot trades remained brisk. In terms of actual transactions, the shipping schedules are still concentrated in November and December. Traded TCs inched up and were concentrated at around $61-62/mt. TCs have risen unabatedly since exceeding the $60/mt mark even amid a decelerated increase, and remain favourable for smelters.

The market’s recent focus on the US Twin Metals copper mine has increased. The mine is one of the world’s largest undeveloped mines, with more than 4.4 billion mt of ore that contains copper, nickel and other strategic minerals. Although the project is supported by the labour union, environmentalists strongly oppose it. Its mining is still subject to the approval of the Ministry of the Interior.

At the same time, Jiangxi Copper and China Metallurgical Group also have plans to develop the Mes Aynak copper mine in Afghanistan. The mine’s copper reserves are estimated at 11.08 million mt, but so far it has not carried out large-scale construction due to the current unstable situation in Afghanistan. The above-mentioned projects are unlikely to contribute the output in the short term. Codelco's Andina and Salvador mines have seen ended strikes and signed wage agreements, which eased the disruptions to mines.

SMM believes that it is difficult to see significant and additional increase in copper concentrate demand in the fourth quarter, so the current TCs are likely to rise further. The pricing coefficient for domestic spot copper concentrate (grade 20%) trended lower amid rising spot copper concentrate TCs, and currently stands at 89-91% (delivery to factory).