CSPT Q3 Copper Concentrate Procurement Guidance TCs Finalised, Spot TCs Continue to Rise

On July 12, the SMM Imported Copper Concentrate Index (weekly) was $3.24/mt, an increase of $2.11/mt WoW. The pricing coefficient for domestic ore with a grade of 20% was 91%-93%.
After mid-year negotiations between Antofagasta and Chinese smelters, the center of copper concentrate spot TCs in China kept rising, with trading volume also gradually recovering. According to SMM survey, recently, a trader sold 10,000 mt of Cerro Verde copper concentrate to a smelter at mid-to-high single-digit TCs, with QP of M+5 and a shipment period in August. During the week, a trader offered small batches of clean ore to smelters at mid-to-high single-digit TCs, with a QP of M+5. Another trader offered clean ore for July-August shipment at a mid-to-low single-digit TC, while the smelter's counter offer was $10/mt. Additionally, a trader offered 10,000 mt of Constancia copper concentrate to a smelter for September shipment, with a QP of M+5. During the week, a smelter purchased 10,000-20,000 mt of regular clean ore from Chile at mid-single-digit TCs, with a QP of M+4. According to SMM, smelters are not in urgent need of raw materials for August-September shipments, while traders' offers outnumbered smelters' inquiries, leading to a continuous rise in spot TCs.
The CSPT held its Q2 2024 general manager meeting in Shanghai on the morning of July 10 and finalised the Q3 2024 spot copper concentrate procurement guideline TCs at $30/mt and 3.0 US cents/lb. The meeting also voted on Minmetals Copper (Hunan) Co., Ltd., Baotou Huading Copper, and Yunnan Tin Co., Ltd. becoming CSPT observer companies.
Western Mining stated that the preliminary procedures for the Yulong Copper Phase III project are progressing as planned. Once completed, the mining and processing capacity of the Yulong Copper Phase III expansion project will reach 30 million mt/year. Six reports, including the "Feasibility Study Report for Phase III" and the "Development and Utilization Plan for Phase III," have already been completed and reviewed.
As of July 12, SMM copper concentrate inventory across 9 ports was 797,200 mt, down 28,800 mt WoW, with the main decrease coming from Jinzhou Port, where inventory decreased by 29,000 mt WoW.