Copper concentrate market: Smelters in low trading willingness with sufficient inventory

SHANGHAI, Dec.11 (SMM)－Last week see a light copper concentrate market. After the negotiation of long-term order is postponed, both sides are in a stalemate. Mining traders doing less quotation and dealers are waiting for direction of the negotiation with low willingness of selling goods. Smelters are also reluctant to purchase goods with sufficient raw materials inventory, thus leading to a stalemate of the market. Up to last Friday SMM spot TC offers at $84-92 per ton, remaining same level as previous week.

Currently smelters and mining traders have not met after CESCO with great difference of opinions before next meeting, according to SMM research. Also large smelters can operate normally until beginning of 2018 with current inventory, showing little interest in spot market. Mining traders suppress TC offer at $85 recently. So circulation among traders is also scarce, leading little transaction in spot market. Postponement of long-term order negotiation also causes domino effect, leading delay of long-term order of import and domestic crude ccopper.

Concerning news level, Tongling was previously reported to have shut down 20-30% crude smelting capacity due to production limit. However, SMM believes refined copper output of Tongling has not been influenced and there is little possibility of production limit of such magnitude occurring on smelters.

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