Antofagasta Finalises Mid-Year Negotiation Results

On June 28, the SMM Copper Concentrate Index (weekly) was reported at -$0.28/mt, down $0.41/mt from the previous $0.13/mt. The pricing coefficient for Cu 20% grade domestic ore was 91-93%.

In the week ending June 28, the copper concentrate spot market was quiet, with market participants, mainly sellers, attending the LME Week in Hong Kong. There were almost no heard transactions or inquiries in the copper concentrate spot market. Recently, a trader sold 10,000 mt of Cerro Verde copper concentrate with a July shipment period to a smelter at a TC of low single-digit, with the quotation period being M+5.

According to SMM, on June 27, 2024, Antofagasta and some Chinese smelters finalised the long-term TC/RC for a half of copper concentrate supply in 2025 at $23.25/dmt and 2.325 cents/lb. This result was higher than the market's general expectations.

According to news reports, MCC Huludao Nonferrous Metals Group Co. successfully implemented trial production of its new double top-blowing copper smelting process, replacing the converter technical upgrade project and achieving an upgrade and reconstruction of the oxygen-enriched top-blowing submerged smelting process for copper concentrate. Lundin Mining currently holds a 51% stake in the Caserones copper mine and is exercising the option reached with Japan's JX Nippon Mining & Metals in March last year, resulting in Lundin Mining's stake in the Caserones copper-molybdenum mine increasing to 70% (SMM expects Caserones to produce 123,000 mt of copper in 2024). With Capstone Copper's successful commissioning of the Mantoverde mine in Chile and gradually reaching full production levels, the Mantoverde development project has produced its first batch of saleable copper concentrate (SMM expects Mantoverde to produce 25,000 mt of copper in 2024).

Copper concentrate inventory across nine Chinese ports on June 28 was 814,300 mt, an increase of 86,300 mt from a week earlier, with the main increase coming from Qinzhou Port. In the week ending June 28, Qinzhou Port's copper concentrate inventory increased by 65,300 mt.