Jiangxi Copper, Antofagasta Agree on Copper Concentrate TCs for 2016

SHANGHAI, Dec. 16 (SMM) - After two months of talks, Jiangxi Copper and Chile’s Antofagasta agreed to set term TC/RCs of copper concentrate at $97.35 per tonne and 9.735￠per pound in 2016, SMM understands.

Chinese copper smelters and overseas concentrate suppliers had greatly spit on term TCs for 2016 previously. Chinese copper smelters had insisted on leaving term TCs at $107 per tonne, while foreign concentrate suppliers expected term TCs to be below $100 per tonne.

Global copper concentrate surplus gave some bargain chips for domestic copper smelters. However, slumping copper prices this year bit into copper mines, and in turn weighed on term TCs. At the same time, import premiums also declined significantly year-on-year, also undermining profit from mines’ smelting products.

“Term TCs at $97.35 per tonne are still profitable for Chinese copper smelters, so no big output cuts at smelters are expected next year,” said an SMM copper analyst. “China’s refined copper output is expected to add 500,000 tonnes to 7.90 million tonnes in 2016, putting pressure on copper price.”

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