Spot TCs for Copper Conc. Rise on Increasing Supply

SHANGHAI, May 27 (SMM) – An increase in copper concentrate supply in physical markets pushed spot TCs for copper concentrate up by $5 per tonne to $110 per tonne last week.

The increasingly volatile copper prices last week caused foreign scrap yards, particularly the SMEs, more willing to sell copper concentrate. However, Chinese copper smelters showed little interest in buying copper concentrate in physical markets.

A recent SMM survey showed most smelters still believe concentrate supply will rise and expect spot TCs to increase to $120-140 a tonne.

In China, copper concentrate supply has fallen recently due to drought conditions in Yunnan and Sichuan.

Prices for Chinese copper concentrate (20%) remained at 84% of refined copper prices last week, and prices for copper concentrate (25%) were 87% of copper prices. Some mining companies were facing tight cash flows, while those with strong finances were able to hold back goods, but continuous increases in copper prices would make them more willing to sell.