China's TC/RCs May Fall by 33% for 2010, Sources

SHANGHAI, Oct. 20 -- Chinese benchmark copper treatment and refining charges (TC/RCs) for 2010 may fall by more than 33% to around USD 50/mt/ Cents 5/lb, sources report.

    "We are asking for USD 60/6, but it is unlikely to be accepted," said a source close to the TC/RC talks.

    "Chances are that overseas miners will ask for USD 45/mt/ Cents 4.5/lb, or even lower, given the market has been tight for months," she added.

    Chinese spot TC/RCs have stabilized at USD 20/mt/ Cents 2/lb for months, after offers fell to as low as USD 10/mt/ Cents 1/lb, plunging from the 2009 benchmark TC/RC of USD 75/mt/ Cents 7.5/lb.

    "It has reached a consensus already, that 2010 TC/RCs will definitely fall by a large margin," said an analyst in Shanghai.

    "The offers could be USD 50/5-USD 55/5.5, with either posting a big drop," he added.

    (Source: Metal Bulletin)