On June 21, the SMM Copper Concentrate Imports Index (weekly) was reported at $0.13/mt, down $0.74/mt from the previous reading of $0.87/mt. As copper prices declined, the pricing coefficient for 20% grade domestic ore dropped to 91-93%.
The spot market was relatively sluggish during the week, with smelters not lacking raw material inventory, and few spot offers for copper concentrate were heard. Bid solicitations by mines continued during the week. The traded TC for 10,000 mt of standard clean ore with a quotation period of M+3 was $1.5/mt for mining companies/smelters and -$10/mt for mining companies/traders. Las Bambas closed its tender on Wednesday, with the winning TC of traders being -$25/mt, either QP M+1 or M+4. There was no progress in the mid-year long-term contract negotiations between Antofagasta and Chinese smelters, with the second-round offer from the mining company still at $10/mt, while the smelters' counteroffer was in the mid-to-high $30s, indicating a big gap. The third round of mid-year long-term contract negotiations will be watched in the week of June 24.
According to foreign media reports, Taseko Mines has reached an agreement with the union representing workers at the Gibraltar Copper Mine after approving the labor agreement. The new agreement will be effective until May 31, 2027, officially resuming operations at the Gibraltar Copper Mine in Canada (SMM expects Gibraltar's copper production in 2024 to be 60,000 mt). Anglo American announced that one of the two beneficiation plants at its Los Bronces Copper Mine will shut down for maintenance starting mid-year, with copper production expected to decrease by about 30% in 2025. Ecuador's Vice Minister of Mines, Diego Ocampo, stated that he hopes to sign the Mirador Copper Mine Phase II expansion agreement within four weeks, at the latest by August. The Mirador Phase II expansion project aims to increase the copper ore production from the Mirador South deposit from 60,000 mt/day (20 million mt/year) to 80,000 mt/day (26.2 million mt/year). The expansion also includes developing the Mirador North deposit, with an expected copper ore production of 60,000 mt/day and an estimated investment of $653 million. Therefore, the total production scale of the Mirador Phase II expansion project will be 140,000 mt/day (46.2 million mt/year), with 80,000 mt/day (26.4 million mt/year) from the southern pit and 60,000 mt/day (19.8 million mt/year) from the northern pit.
SMM copper concentrate inventory across nine ports in China on June 21 was 727,900 mt, down 17,800 mt from the previous week, with the main decline coming from Qingdao Port, where copper concentrate inventory decreased by 20,000 mt.
