Copper smelters urge for higher refining charges

Author: Paul Ploumis17 Oct 2014 Last updated at 07:15:02 GMT

NEW DELHI (Scrap Monster): As the supply of copper increased the miner agreed to the refining charge and treatment charge up to 92 dollars per tonne, which is about a 31 percent increase and 92 cents per pound. The smelting companies are expecting on an increase of charges by 20 percent to 115 dollars per tonne and 11.5 cents per pound after the negotiation meeting is over on Saturday.

The major smelting companies in India include Hindalco group owned by, Aditya Birla Group, Sterlite Industries, which is owned by Vedanta Group. About half of Hindalco’s income depends on refining whereas, Sterlite’s whole income depends on refining.

An analyst, Nick Brown, stated that, the rise in the refining charges and the treatment charges, is the unavailability of smelters compared to the availability of copper. The main reason in the increase of the refining charge and treatment charge is the increase in supply. The coming of new mines and the expansion of production in the old mines are creating the increase in supply to a large extend. As the supply and the number of mines are increasing and as the number of smelters still remains the same, the charge on the refining is expected to rise.