Copper concentrate TCs floor price to rebound in Q3

Published: Jun 26, 2018 18:56 (GMT+8)

Save

The floor price of imported copper concentrate TCs for Q3 is likely to stand at $85-87/mt, SMM estimated

SHANGHAI, Jun 26 (SMM) – The floor price of imported copper concentrate treatment charges (TCs) for the third quarter is likely to stand at $85-87/mt, up from $78/mt in the second quarter, SMM estimated.

The price is set to be determined at the end of this month as the China Smelters Purchase Team (CSPT) convenes in Manzhouli of Inner Mongolia, SMM learned.

We expect the floor price to rise in the third quarter as demand from smelters declines amid sufficient inventory and ample supply. Smelters have stockpiled due to rising spot copper concentrate TCs since mid-May.

TCs of imported clean copper concentrate for the week ended Friday June 22 rose $2/mt from a week ago to stand at $81-87/mt, according to SMM assessment This marked the fifth consecutive week of increase.

While copper mines operated smoothly during the first half of 2018, supply of imported copper concentrate grew due to turmoil at Vedanta Resources' copper smelter in India's state of Tamil Nadu, which buoyed TCs.

Market participants believed that issues at Vedanta are unlikely to be resolved in the short term. This also added to the expectation of higher copper concentrate TCs in the September quarter.

TCs for spot copper concentrate are also likely to remain at high levels in the short term. Key things to watch include salary negotiations at the world's largest copper mine Escondida in Chile, and the development at Vedanta's smelter, SMM believes.

Separately, the growth rate of global copper mine production is expected to rebound to 3.3% this year, SMM forecast, and the supply increment to stand at 650,000 mt in metal content. About 80% of this would come from the international markets, whereas production at Chinese mines is likely to keep growing in the following years as new capacity commissions.

Domestic demand for copper concentrate will also grow this year on fewer scheduled maintenance across large-scale smelters, SMM survey showed. We expect China's refined copper production to reach 8.45 million mt in 2018, up 5.6% from 2017.

Market commentary Copper concentrate Treatment charges

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

8 hours ago

KGHM and South32 launch US$725m Sierra Gorda expansion, lifting copper capacity 26%

KGHM and South32 have broken ground on a fourth grinding line at the Sierra Gorda copper-molybdenum mine in Chile's Atacama region. The US$725 million expansion runs for three years from January 2027, with completion by late 2029 and full output in H2 2030. Ore processing capacity rises 26%, from 131,000 tonnes per day to 165,000 tpd. Annual copper output is projected to climb from 165,000 tonnes in 2025 to 195,000 tonnes, with 6,000 tonnes of molybdenum, 58,000 ounces of gold and 1.7 million ounces of silver as by-products. The project creates over 900 direct jobs and is funded from operating cash flow and debt. Unit operating costs are expected to fall about 10%.

8 hours ago

9 hours ago

Emerita Extends Final Review of Iberian Belt West PFS, Release Expected in Coming Weeks

Emerita Resources has provided an update on the Preliminary Feasibility Study (PFS) for its Iberian Belt West polymetallic project in Spain, saying the study is well advanced but remains under final technical review. The company said the review process has been expanded to include additional technical and quality-assurance oversight before publication. As a result, Emerita now expects the PFS to be released in the coming weeks rather than within the previously indicated timeframe. Iberian Belt West hosts copper, zinc, lead, gold and silver mineralization and is one of Emerita’s principal development-stage assets in Spain. The PFS is expected to provide updated detail on the proposed mine plan, processing configuration, capital requirements, operating costs and project economics. Emerita said the additional review work is intended to ensure consistency and completeness across the technical disciplines contributing to the study before it is finalized. The company did not announce a revised specific publication date, and no new production, capital or economic figures were disclosed in the latest update. The extended review delays the next major technical milestone for Iberian Belt West, but the company continues to indicate that the PFS is nearing completion. For the copper market, the significance of the study will depend on the production profile and project economics ultimately disclosed, particularly the contribution of copper relative to the project’s other payable metals. Attention will therefore remain on the timing of the PFS release and whether the final study materially changes the project’s development outlook.

9 hours ago

Cascadia Intersects 75.55 m at 1.19% Cu at Carmacks Copper-Gold Project

Cascadia Minerals has reported additional drill results from its 2026 exploration programme at the Carmacks copper-gold project in Yukon, Canada, with new step-out drilling extending mineralization at Zone 2000S beyond the boundaries of the existing Mineral Resource. Drill hole CD-26-058 returned 75.55 metres grading 1.19% copper, 0.97 g/t gold, 10.4 g/t silver and 335 ppm molybdenum, equivalent to 2.18% copper-equivalent. The interval included 48.66 metres grading 1.61% copper, 1.39 g/t gold, 15.1 g/t silver and 475 ppm molybdenum, equivalent to 3.03% CuEq. Within the same hole, a higher-grade interval of 14.50 metres returned 2.30% copper, 2.68 g/t gold, 29.5 g/t silver and 1,015 ppm molybdenum, equivalent to 5.08% CuEq. A second hole, CD-26-059, intersected 93.99 metres grading 0.96% copper, 0.70 g/t gold, 4.6 g/t silver and 919 ppm molybdenum, equivalent to 1.94% CuEq. This included 63.97 metres at 1.26% copper, 0.96 g/t gold, 6.3 g/t silver and 1,049 ppm molybdenum, equivalent to 2.52% CuEq. Cascadia said the latest results continue to expand mineralization at Zone 2000S beyond the limits of the current Mineral Resource and highlight the higher-grade nature of the extension. The reported drill intervals represent drilled thicknesses, with true widths estimated at approximately 60–70%. The latest step-out results indicate that copper-gold mineralization at Zone 2000S extends beyond the boundaries of the current Carmacks Mineral Resource. The broad intervals and higher-grade internal zones could support future resource expansion if additional drilling confirms continuity. However, the new intersections have not yet been incorporated into an updated Mineral Resource Estimate, meaning their ultimate impact on project scale and mine planning remains to be determined.

9 hours ago