Spot TC/RC of Copper Concentrate Up, Trading Increases

 

Last week, the SHFE/LME copper price ratio was low, and so domestic traders were wary of the purchasing, with high-grade raw ore and low-sulfur copper concentrate preferred. At present, traders mainly source goods from Africa and Southeast Asia, and some negotiations are under way, with spot goods expected to arrive in the coming several weeks.  

 

Spot TC/RC of copper concentrate was in the USD 70-80/mt range over this past week. Smelters increasingly believe spot TC/RC will rise further, possibly to as high as USD 85/mt.  Chinese copper smelters are also optimistic toward long-term copper concentrate contracts for 2H 2013.

 

Last week, prices for copper concentrate (20%, ex-works prices) were 84.5% of refined copper prices, and 89% of refined copper prices for copper concentrate (25%, price to the factory). Large smelters increased the purchasing, mainly high-grade goods, leaving inventories up slightly. Supply of copper concentrate will remain ample for the foreseeable future.