SHANGHAI, Oct. 28 (SMM) – Some Chinese copper smelters communicated with mining companies during the LME Week on term TC/RCs for copper concentrate shipped to China next year, but no contracts have been concluded, SMM observed.
It was said that mining companies have been more active than smelters in expressing their opinions on 2015 TC/RCs.
Spot TCs for imported copper concentrate have been climbing this year and are now around $115-120 per tonne.
China’s copper concentrate imports hit a record high in September. However, these imports mainly consisted of term shipments, and smelters showed little interest in spot purchases due to ample stocks on hand.
Global copper concentrate supply is expected to grow as some mines ramped up production and concentrate exports from Indonesia recovered. These factors combined to push up spot TCs for the raw material.
SMM’s recent survey indicates most industry insiders intend to hike the term TC for 2015 to $100-110 per tonne. These market participants believe copper concentrate supply will far exceed demand in 2015 due to sharp output increases expected in Peru, Indonesia and Mongolia.
Foreign mining companies, however, argue that production in Chile will decline as yields from older mines are slipping.
SMM notes that members of the China Smelters Purchase Team were acting more cohesively this year so that Chinese smelters could win a stronger position in the 2015 TC/RCs negotiation.
Small and medium smelters told SMM that they may increase order books should the term TC/RCs be high enough.
For news cooperation, please contact us by email: email@example.com or firstname.lastname@example.org.