SHANGHAI, May 15 (SMM) –It is now widely expected that copper concentrate supply will turn ample in Q2. This is in contrast with views one month ago that supply would tighten. So, how will spot TCs of imported copper concentrate perform in the second half this year?
Market players expect the upside room for spot TCs to be curbed by new and expansion of blister copper projects in China in H2 2017. Besides, some overseas mines will face negotiations over labor contracts and threat of strike, another constraint on spot TCs.
Spot TCs of imported copper concentrate continued rising in the week ending May 14, with quotes between $ 77-83/tonne on May 12, SMM data showed. Trading was relatively quiet since most market players were away for the LME Asia Week 2017 held on May 10. Offers at above $ 80/tonne increased for clean concentrate. Members of the China Smelters Purchase Team (CSPT) replenished stocks in small amounts at $ 80/tonne, which met their physiological purchasing price. Mainstream TCs for clean concentrate were $ 80-82/tonne.
Smelters’ pricing power strengthened and are trying to push spot TCs up to $ 85/tonne. Many smelters remain under maintenance in May. Rising spot TCs should improve smelters’ buying interest further for the rest of May, SMM expects.
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