Spot TC/RCs for Copper Conc. Hold Steady, But Rises Expected

SHANGHAI, Jun. 10 (SMM) – Spot TCs for imported copper concentrate remained unchanged at $110 per tonne last week. Concentrate of higher grades were more favored and traded at TCs of $90-95 per tonne. TCs for copper concentrate with greater impurities were $150-160 a tonne.

Chinese copper smelters remained uninterested in importing copper concentrate in physical markets, as they were still holding sizable raw material stocks. Small and medium scrap yards overseas showed high selling interest, pushing up supply.

Market players still see upward room for spot TCs to rise based on expectations of copper concentrate exports from Indonesia.

Now that Newmont Mining has suspended operations in Indonesia and concentrate stocks at Freeport-McMoRan’s Grasberg mine are piled up, analysts believe a number of issues now plaguing Indonesia, including higher unemployment and slow GDP growth, may force the government to allow exports sometime in the second half of this year. This leads to the prediction that spot TCs may rise above $130 per tonne in the future.

In China, some mining companies began selling copper concentrate last week, but most private mines still held back good, waiting for copper prices to rise. High-grade concentrate is gaining popularity among Chinese traders.

Prices for Chinese copper concentrate (20%) last week were 83% of refined copper prices, and prices for copper concentrate (25%) were 86% of copper prices, with the price multiple down slight from the level before China’s Dragon Boat Festival.