Negotiations on long-term contracts for copper concentrates expected to commence mid-year, with TCs stabilizing around the mid-point of $40 [SMM Weekly Review of Spot Copper Concentrates]

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       On May 16, the SMM Imported Copper Concentrate Index (weekly) was reported at -$43.05/dmt, up slightly by $0.06/dmt from the previous -$43.11/dmt. The pricing coefficient for 20% grade domestic trade ore was 93%-95%.

       Recently, there have been frequent spot cargo tender and bid activities for copper concentrates: Last weekend, a trader sold 10,000 mt of clean ore to a smelter at a mid-to-low price of -$40/dmt, with a loading period in June and a QP of M+1/5; a trader sold less than 20,000 mt of a mixed cargo of dry bulk and containers to a smelter at a mid-to-high price of -$30/dmt, with a loading period in June and a QP of M+1/5; a trader sold 20,000-30,000 mt of bundled ore to a smelter at a low price of -$40/dmt, with a QP of M+1/5; a tender for 10,000 mt of Bisha copper mine was held, with a loading period in late June, and the tender closed early this week; BHP began a tender for 10,000 mt of Escondida, with a closing date of May 20; Ilo smelter, a subsidiary of SPCC, was affected by maintenance activities in June-July, and tenders were held for multiple batches of Cuajone and Toquepala copper concentrates, with 10,000 mt tendered each in June, July, and August, and a closing date of May 21; Anglo American announced tender results, with 20,000 mt of clean ore priced at -$80/dmt for loading in H2 2025 and 20,000 mt priced at -$40/dmt for loading in Q1 2026.

       Codelco stated that it would work with Rio Tinto to jointly develop the Nuevo Cobre copper mine project in the Atacama region of northern Chile, adjacent to the San Antonio mine area. Codelco holds a 43% stake in the Nuevo Cobre project, while Rio Tinto holds a 58% stake. Ivanhoe Mine announced that its latest exploration results at the Makoko mine area in the DRC showed that the copper resource base had nearly doubled compared to a year and a half ago. The current copper reserves in the area totaled 9.37 million mt, an 89% increase from the estimated 5 million mt announced in November 2023. Antofagasta Mining Company stated that its Zaldivar copper mine in Chile had received environmental approval from local authorities to continue operating with existing water sources until 2028.

       On May 16, the SMM copper concentrate inventory at nine ports was 819,700 mt, a decrease of 80,600 mt from the previous period, with the main reduction coming from Qingdao Port. This week, the copper concentrate inventory at Qingdao Port decreased by 40,000 mt WoW.

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