Blister copper RCs rise as quiet trades continue post-CNY

Jiangxi Copper and Chambishi, a Zambian blister copper producer under China Nonferrous Metal Mining Group, set the benchmark refining charge (RC) for imported copper anode at $145/mt cif, in their 2021 long-term contracts, rising significantly from the $128/mt in 2020, which indicates market expectations of ample blister copper supply in the future.

Mainstream refining charges (RCs) of domestic blister copper stood at 1,400-1,550 yuan/mt in November, delivery to factory, an average increase of 25 yuan/mt amid positive demand. RCs of imported blister copper stood at $150-165/mt, up $15/mt on average. RCs for blister copper cif rose further as China Customs has levied value-added tax on gold in imported plate-shaped copper anode since October which dampened interest in such products greatly, and blister copper inventories at domestic smelters were abundant.

Mainstream refining charges (RCs) of domestic blister copper stood between 1,350 -1,550 yuan/mt on a delivery to factory basis in October, with the monthly average RCs down 50 yuan/mt from the previous month.

Domestic zinc concentrate supply has tightened this year as COVID-19 drove mining companies across Peru and Mexico to halt production. This, combined with sharp declines in domestic zinc concentrate production, lowered treatment charges (TCs) from a high seen early this year. Large quantities of shipments from other countries pushed China’s zinc concentrate imports to a record high in April.

China will stay committed to deeper reform and wider opening-up, and will step up efforts to expand domestic demand and increase the vitality for economic development in the face of growing uncertainties and challenges presented by the COVID-19 pandemic, according to a meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee on Thursday July 30.

Silicon prices returned to a downward trend in June after stabilising in May, as supply increased with ramped-up production in Yunnan and Sichuan, while demand in the domestic and overseas markets failed to post same growth. Trades were thin amid pessimistic sentiment.

Near-term prices of cobalt may find some support as stockpiling demand for cobalt salt increased last week after some workers in mining areas of Congo were tested positive for the coronavirus.

Tshipi offered South African semi-carbonate manganese ore with 36% Mn, for July delivery to China, at $4.5/mtu, down $0.45/mtu from the first round of offers and down $1.05/mtu month on month. 

The adjustment brought quotes of terbium oxide to 4.7 million yuan/mt, up 150,000 yuan/mt from a week ago, marking the seventh consecutive week of increase. This followed a rise of 100,000 yuan/mt in the previous week.  

The government of Fengrun district of Tangshan, China’s top steelmaking hub, has urged local steel companies to tighten production controls between 12:00 CST June 27 and 24:00 CST June 30, in the face of unfavourable weather conditions for dispersing air pollutants.