SHANGHAI, Jan 3 (SMM) - As of Friday December 30, the SMM Imported Copper Concentrate Index (weekly) stood at $86.07/mt, $0.39/mt lower than the previous week. Spot copper concentrate trading picked up slightly last week. According to SMM research, after Ventanas port in Chile was closed due to a fire accident, a smelter bought some clean concentrates which were scheduled to be shipped in January 2023 at the TCs of $81-82/mt amid worries that the shipments of copper concentrates would be hindered in January. At the same time, the Los Bronces announced that the copper supply was disturbed by force majeure. TCs of clean concentrates between mines and smelters were $84-85/mt, which were scheduled to be shipped in the first quarter of 2023.
According to foreign media, Antofagasta said that its Los Pelambres copper mine in Chile was blocked by a small community. Although the blockade did not have a substantial negative impact on the production of the Los Pelambres copper mine, it restricted the transportation and people entering and leaving the mine. Antofagasta is actively negotiating with local community representatives to solve the problem. Besides, Anglo American stated that the Ventanas port is closed after the fire accident. And it is actively looking for alternative copper concentrate transportation solutions. What’s more, First Quantum's CEO met with Panama's minister of industry and commerce last Monday to discuss the company's differences with the government over its copper business in the country after the Panamanian government ordered the suspension of operations at its Cobre Panama copper mine.
According to the SMM data, the port inventory of copper concentrate last Friday stood at 702,000 mt in physical content, down 42,000 mt WoW. SMM survey showed that CSPT held the fourth quarter general manager's office meeting online on December 29, which nailed the TCs of spot copper concentrates in the first quarter of 2023 at $93/mt and $0.093/lb, flat from the figure in the fourth quarter of 2022. In view of the closure of the Ventanas port due to the fire, Los Bronces’ announcement of suffering from force majeure, the blockade of the Los Pelambres copper mine and the production suspension of the Cobre Panama copper mine, TCs of copper concentrates will trend lower inevitably, and the trend may not be reversed in the short term.
