Copper concentrate TCs down on higher demand

SHANGHAI, Mar 5 (SMM) – SMM assessed spot imported copper concentrate treatment charges (TCs) $4/mt lower to $70-78/mt on Friday March 2 due to higher demand and possible lower output.

While some small and medium-sized smelters stocked up before the Chinese New Year holiday, traders actively sourced copper concentrate in anticipation of tighter supply. Lingbao Gold’s additional 100,000-mt capacity to be commissioned later in the year also gave more pressure to the TCs.

In addition, miners are likely to keep TCs lower due to the contango structure of LME copper. The risks of more strikes following labour contract negotiations in March and April led them to be bearish on TCs.

However, SMM believes copper concentrate TCs would stabilise this month and even go up as smelter sources said supply is not as tight. Large smelters currently expect to procure at a similar level to the 2018 benchmark price at $82.25/mt.

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