CSPT Set the Spot Copper Concentrate TC/RC Guidance Price at $70/mt and￠7.0/lb Respectively in Q4

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.

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) held a first-quarter general manager's office meeting in Shanghai Pudong this morning.

Treatment charges (TCs) for zinc concentrate may face further downside potential on tighter supply as Chinese miners are grappling with losses on falling zinc prices and the coronavirus pandemic has deterred operations of some overseas zinc miners. 

The SMM Copper Concentrate Index comprises of the prices of copper concentrate TC in the spot market

As of Friday Feb 1, TCs for lead concentrate (Pb 50%) were heard at 1,800-2,000 yuan/mt in Henan province

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