SHANGHAI, Jun. 24 (SMM) – Although Indonesia is reportedly drafting a new export policy that may cut duty on copper concentrate exports, some market players believe that spot TC/RCs for copper concentrate will fall as uncertainty remains over Indonesia’s concentrate supply, SMM learned last week.
Some market players held that foreign mining companies will fail to reach any substantial agreement with the Indonesian government on relaxing its ban on the export of copper concentrate, which will continue to restrict the supply of Indonesian concentrate in global markets.
The lack of supply is also believed to be behind BHP Billiton’s cut in TC/RCs for term shipments for the second half of 2014.
A study shows that Indonesian export policies are having a strong influence on TC/RCs for copper concentrate, and declines in spot TC/RCs are expected as copper smelting capacity in China grows in H2 2014.
Spot TCs for copper concentrate bought by Chinese importers remained little changed last week at $110 per tonne. Spot trades were still thin as Chinese smelters were sitting on high raw material inventories.
In China’s domestic markets, prices for Chinese copper concentrate (20%) last week were 84% of refined copper prices, and prices for copper concentrate (25%) were 87% of copper prices.
Some concentrates (20%) in Heilongjiang and Inner Mongolia were sold at 85% of copper prices due to lower impurities. Transactions improved after rising copper prices boosted selling interest at Chinese mines.