OZ Minerals: Spot Copper Smelting Fees To Fall Further

SYDNEY, July 21 -- OZ Minerals Ltd. (OZL.AU) Tuesday said smelter fees to refine copper concentrate into metal are set to continue to fall, as Asian smelters struggle to secure sufficient feed.

    During the second quarter, spot sales already concluded below US$25 a metric ton and 2.5 U.S. cents a pound, OZ Minerals said, and terms for the spot market are expected to fall further because of a shortfall in concentrate supply.

    Talks to set mid-term fees, known as treatment and refining charges, between Japanese smelters and producers are still ongoing, but earlier expectation of TC/RCs of US$45/ton, and 4.5 cents a pound are unlikely now.

    Analysts have said they expect mid-term fees to fall toward the US$30/ton and 3 cents a pound level.

    Annual TC/RCs settled at US$75/ton and 7.5 a pound in January, and essentially represent a smelter's profit margin on refined metal.

    (Source: Dow Jones)