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SHANGHAI, Nov. 3 -- More copper smelters in China are resuming toll trading for imported concentrates as treatment and refining charges (TC/RCs) fall and domestic demand weakens, sources report.
&nbsp;&nbsp;&nbsp; &quot;Chinese copper smelters, including Jiangxi Copper, resumed toll trading as early as in the third quarter, so as to tackle falling TC/RCs and difficult sales in the local physical market,&quot; said a trader in Shanghai.
&nbsp;&nbsp;&nbsp; Spot copper premiums have fallen to quotations as low as USD 30/mt, compared to the annual benchmark at $75, while spot copper TC/RCs were quoted at $20 per tonne/2 cents per lb, down from the annual offer of $75/7.5.
&nbsp;&nbsp;&nbsp; &quot;Given the deteriorated situation, I am forecasting that toll trading will pick up in the next few weeks,&quot; said the trader.
&nbsp;&nbsp;&nbsp; &quot;October exports from China have already hit the highest level this year, indicating a weak market locally,&quot; he said.
&nbsp;&nbsp;&nbsp; China exported 10,705 mt of refined copper in September, up 338% year-on-year, according to Chinese customs.
&nbsp;&nbsp;&nbsp; &quot;Any TC/RC offer below $70/7 can be read as loss-making,&quot; said an official at a local smelter. &quot;Although Chinese smelters agreed to the offer of $47.2/4.72 in 2008, it was offset by record-high sulfuric acid prices that time.&quot;
&nbsp;&nbsp;&nbsp; Acid prices were quoted at over RMB 2,000/mt (USD 292/mt) in early 2008 but have since fallen back to RMB 20-30/mt.
&nbsp;&nbsp;&nbsp; However, toll trading will not pose much influence over copper prices as the volumes processed remain small, said market participants.
&nbsp;&nbsp;&nbsp; &quot;We cannot tell how much concentrate has been imported for toll trading, but I am convinced the amount is not big,&quot; said the official.
&nbsp;&nbsp;&nbsp; &quot;It could be only several thousand mt, so it won't affect too much at all,&quot; he said.
&nbsp;&nbsp;&nbsp; (Source: Metal Bulletin) 
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