Spot TC/RCs for Copper Conc. Expected to Rise

SHANGHAI, Jun. 4 (SMM) – Most Chinese copper smelters expected spot TC/RCs for copper concentrate to rise considering increasing supply.

A recent survey showed most smelters expected spot TCs to climb to $150 per tonne, based on expectations that Indonesia’s Grasberg mine will start exporting concentrate during Q3 this year and that production at Mongolia’s Oyu Tolgoi mine will increase output during H2. In addition, Glencore Xstrata’s copper mines in Africa, Australia, and South America were also ramping up production.

Mining companies overseas, particularly SMEs, showed strong selling interest last week after copper prices fell. But Chinese copper smelters remained reluctant to buy due to high existing stocks. Spot TCs for imported copper concentrate remained little changed at $110 per tonne.

Prices for Chinese copper concentrate (20%) last week remained at 84% of refined copper prices, and prices for copper concentrate (25%) were 87% of copper prices.

Copper concentrate supply from Yunnan and Sichuan continued to fall as water shortages were still affecting local mines. Some mining companies plan to sell goods after copper prices rise to 52,000-55,000 yuan a tonne, which may boost activity in China’s domestic copper ore markets.