China's Spot Copper TC/RCs Still at $20/2 on Tight Supply

SHANGHAI, Sept. 15 -- China's spot copper treatment and refining charges (TC/RCs) remained at a low USD 20/mt /Cents 2/lbs this week on short supply, said industry sources.

    TC/RCs have stayed at this level for two to three months.

    "The market remains tight, with falling scrap and concentrate supply," said a physical trader in Shanghai.

    "$20/2 is far below the average production cost of Chinese smelters, which is about $50/5 at the lowest," he said.

    "In light of rising output from China, the country is still short of concentrate, and scrap imports are falling too," agreed an analyst in Shanghai.

    Copper scrap imports failed to extend July's rebound and fell 13% to 390,000 mt in August, 22% lower year-on-year, according to preliminary Chinese customs figures.

    Meanwhile, copper production rose another 9% from July to hit a record 365,000 mt in August, up 15% year-on-year, according to the statistics bureau.

    New supplier Atlas Consolidated Mining is set to deliver 5,574 wmt of copper concentrates to Qingdao soon, and a further 5,500 wmt to Shanghai by the end of September.

    But the volumes are too small to meet China's rising demand from China, said the analyst.

    (Source: Metal Bulletin)