TCs of Spot Copper Concentrates in the First Quarter of 2023 Set by CSPT is Flat from the Figure in the Fourth Quarter of 2022

SHANGHAI, Jan 13 (SMM) - The SMM Copper Concentrate Index (monthly) stood at $87.75/mt in December 2022, down $2.41/mt from November. The SMM Imported Copper Concentrate Index (weekly) was $86.07/mt as of December 30. The figure crashed from a high of $91.08/mt on November 25, 2022. COVID-19 and the upcoming Christmas holiday overseas reduced the number of players still making quotes, and TCs of clean concentrates under long-term contracts in 2023 between smelters and traders were $3-5/mt lower than the benchmark. Besides, traders were more willing to delay the settlement of spot positions and combine them into the long-term orders in early 2023. The recent frequent disturbances on the supply side have also cast a certain impact on the spot market. A fire at the Ventanas port in Chile hindered the shipments of mines. In Peru, large-scale riots blocked the shipments at the Matarani port. At the beginning of the month, the truck drivers in the US went on strike, weighing on the US copper concentrate exports. Moreover, the warehousing capacity of raw materials of the Las Bambas copper mine was about to reach its limit.

According to foreign media, the fire at the Ventanas port in Chile hindered the shipments of mines. At the same time, the Los Bronces announced that the copper supply was disturbed by force majeure. And Anglo American is actively looking for alternative copper concentrate transportation solutions. In Peru, Pedro Castillo was dismissed by Congress and arrested, and a fierce protest broke out in the country, putting pressure on the new government. The protest spread to Matarani port and hindered the shipment of copper concentrates. In December, First Quantum failed to reach an agreement with the Panamanian government, which included the government’s request for an increase in taxes of $375 million, and the Cobre Panama copper mine was forced to stop production. First Quantum's CEO has met with Panama's minister of industry and commerce to discuss the company's differences with the government over its copper business in the country.

Antofagasta, Anglo American and Chinese smelters have set the copper concentrate TCs under long-term contracts in 2023 at $88/mt. On December 29, 2022, CSPT held the fourth quarter general manager's office meeting online, which nailed the TCs of spot copper concentrate in the first quarter of 2023 at $93/mt, flat from the figure in the fourth quarter of 2022. The pricing coefficient of domestic spot Cu 20% copper concentrate stood at 88.5-89.5% on a delivery-to-factory basis.