China copper smelters failed to agree on floor TC for Q2 2020

Published: Apr 8, 2020 18:24

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China’s copper smelters failed to reach an agreement on the floor treatment and refining charges (TC/RCs) for the second quarter of 2020 at a meeting by video conference on Wednesday.

SHANGHAI, Apr 8 (SMM) – China’s copper smelters failed to reach an agreement on the floor treatment and refining charges (TC/RCs) for the second quarter of 2020 at a meeting by video conference on Wednesday.

The floor TC is expected to fall within the range of $60-65/mt, according to the quarterly meeting of the China Smelters Purchase Team (CSPT) and quotes from smaller smelters.

For the first quarter of 2020, the floor TC/RCs were set at $67/mt and 6.7 cents/lb, and the TC marked a moderate increase of $1/mt from the last quarter of 2019.

At the meeting, small and medium-sized smelters said that they are still facing heavy pressure from the byproduct—sulpfuric acid.

SMM copper concentrate index, which measures TCs for spot trades in China, stood at $62.5/mt for the week ended April 3, down $2.82/mt from the previous week. The index reached a one-year peak of $71.47/mt in the week ended March 13.

Spot TCs fell sharply as concerns about supply were sparked by measures imposed to contain the spread of the coronavirus pandemic in major producing countries.

Copper TCs Copper concentrate

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