Transactions between Mines and Smelters were Active, and Spot TCs Kept Falling

SHANGHAI, Jun 20 (SMM) - As of Friday June 17, the SMM Imported Copper Concentrate Index (weekly) stood at $73.91/mt, $1.36/mt lower than the previous week. The transactions between mines and smelters were active, while the transactions between traders and smelters were limited, and they mainly traded the mixed and non-standard ores. TCs of imported copper concentrate kept dropping last week. Some smelters still get the restocking demand in the second half of 2022. Last week, smelters quoted the TCs of clean ores that were scheduled to be shipped in August and September at $74-79/mt, while the traders offered $71-75/mt. The buyers and sellers are waiting for the guidance from the long-term order negotiations among Antofagasta and some Chinese smelters. Last week, the second round of negotiations was finished, and the next round of negotiations will be held this week.

The supply of copper concentrate tended to be relatively optimistic last week. According to SMM research, the Las Bambas copper mine made substantial progress in resuming production last week, and the in-plant inventory of copper concentrate would be shipped to the market in July. It is reported that Kazakhstan stopped exporting some base metals in June, but according to the SMM survey, the copper concentrate exported from Kazakhstan to China was temporarily normal. The Erenhot in China made every effort to ensure the operation at ports. The Ventanas smelter owned by Codelco in Chile stopped the production for maintenance due to environmental pollution, and the workers' union threatened to strike because the smelter failed to realise the $50 million investment in environmental protection.

Generally speaking, differences between buyers and sellers on the spot TCs have narrowed, and the market is waiting for the guidance from the long-term order negotiations. Last week, in the negotiations between Antofagasta and Chinese smelters, the smelters quoted the TCs at $84-89/mt, and the mines offered $64-69/mt. The next round of negotiation will begin this week. Last week, the pricing coefficient of domestic spot Cu 20% copper concentrate remained unchanged at 89-91% on a delivery-to-factory basis.