CSPT did not set Q2 guidance TC/RC for spot copper concentrate

According to internal sources, the copper concentrate benchmark TC/RC under long-term contracts have been set at $65/mt and ￠6.5/lb respectively in 2022.

The CSPT held a general manager office conference in Shanghai this morning, at which the spot TC/RC guidance price was finalised at $70/mt and￠7.0/lb in Q4. Spot TC has fallen to $30/mt at the end of March, the lowest level in ten years. Many smelters suggested that they could not accept prices below $30/mt. In doing so, the CSPT did not determine the rock-bottom price for Q2, the price in Q3 rose slightly from Q1 and increased sharply in Q4, indicating that the tight supply of copper concentrate was eased.

The CSPT held a general manager office conference in Shanghai this morning, at which the spot TC/RC guidance price was finalised at $70/mt and￠7.0/lb in Q4.

SMM RCs for domestic blister copper stood at 1,800-2,000 yuan/mt in May, up 100 yuan/mt month on month. RCs for imported blister copper were $185-205/mt on a cif basis, up $15/mt on the month.

The China Smelters Purchase Team (CSPT) set the floor prices of imported copper concentrate treatment  and refining charges (TC/RC) at $53/mt and 5.3 cent/lb respectively for the first quarter of 2021, down $5/mt and 0.5 cent/lb from the fourth quarter of 2020.

Copper prices are expected to move higher amid recovering global economy and ample market liquidity.

It is reported that a senior executive of China Minmetals Corporation on Tuesday called for the establishment of a joint organization of Chinese zinc smelters to negotiate with miners on zinc concentrate supply and pricing in the light of the existing joint negotiation group on copper raw materials in China. "We want to build a healthier market," he said. “The aim of this proposal is for Chinese zinc smelters to agree on a TC benchmark price for zinc concentrates in the future. We need more support from smelters now. "

CSPT finalised that the price floor of TC at $58/mt, RC at 5.8 cents/pound

In December, China imported 1.93 million mt of copper concentrate, down from 2.16 million mt in November

350,000 mt of smelting capacity is expected to come online in 2020, while refining capacity will expand by 450,000 mt