Blister copper produced from copper scrap is expected to be sufficient in supply

Published: Jan 11, 2021 12:20
Mainstream refining charges (RCs) of domestic blister copper stood at 1,450-1,550 yuan/mt in December, delivery to factory, an average increase of 25 yuan/mt from the previous month.

SHANGHAI, Jan 11 (SMM)—Mainstream refining charges (RCs) of domestic blister copper stood at 1,450-1,550 yuan/mt in December, delivery to factory, an average increase of 25 yuan/mt from the previous month. RCs of imported blister copper CIF stood at $155-165/mt, up $2.5/mt on average. With the implementation of the secondary copper resource policy, overseas high-quality copper scrap continued to flow into China, forcing some domestic lower-quality copper scrap to the smelting end, and the production at copper scrap smelters increased. The domestic long-term order prices of RCs for blister copper will be around 1,500 yuan/mt in 2021, indicating the strong market confidence in supply. China’s imports of copper anode hit a new high at 117,700 mt in November, and the domestic blister copper inventories were abundant at refineries, so the RCs of blister copper remained high.

RCs for blister copper in China

Source: SMM 

The long-term order prices of RCs for blister copper CIF are yet to be settled. Buyers and sellers have not reached an agreement on which side to bear the cost of the gold value-added tax. The market prices are expected to rise to $140-145/mt.

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Blister copper produced from copper scrap is expected to be sufficient in supply - Shanghai Metals Market (SMM)