Spot TC/RCs for Copper Conc. Hold Steady, Trades Still Light

SHANGHAI, Jun. 17 (SMM) – Small and medium copper concentrate suppliers overseas still showed strong selling interest last week, but high quotes dampened trading.

Dalian’s bonded warehouses were ordered to suspend operation in the aftermath of Qingdao’s probe into metal-based financing. The growing influence of the case fueled market concerns over metal trade, weighing on copper prices.

Spot TCs for imported copper concentrate remained little changed last week at $110 per tonne, with spot trades down sharply. Chinese copper smelters remained optimistic about spot TCs considering ample concentrate supply.

Traders showed strong selling interest and quoted $100-110 a tonne, but transactions were limited. Many buyers mixed low-grade ores with high-grade concentrate for production.

In other major news, at least one large Chinese copper smelter has reportedly reached an agreement with BHP Billiton to cut TC/RCs for term concentrate shipments to $95.5 per tonne and 9.55 cents per pound during the second half of 2014. The agreed TC/RCs are said to be based on uncertainties over exports from Indonesia’s Grasberg mine.

In China’s copper ore market, supply of domestically-produced copper concentrate increased last week, mostly contributed by small and medium mines in Anhui and Jiangxi. Prices for Chinese copper concentrate (20%) last week were 83-84% of refined copper prices, and prices for copper concentrate (25%) were 86-87% of copper prices. High-grade concentrate was still favored by most smelters and traders.