The SMM April Copper Concentrate Index continued to rise by $5.88/mt on the month to $83.38/mt. The SMM Imported Copper Concentrate Index (weekly) for the week ending April 28 was $84.75/mt.
The CESCO conference held in Chile from April 10 to April 14 attracted market participants, arousing a wait-and-see sentiment among market players and further reducing the spot copper concentrate transactions and inquiries in the month. Offers of traders for seaborne clean ore, scheduled for delivery between June and August stood at $85/mt for smelters, and counteroffers stood at $90/mt. Traded TCs for clean seaborne ore scheduled for delivery in June between smelters and mines stood at $85/mt. The pricing coefficient of domestic spot Cu 20% copper concentrate currently stand at 88.5-89.5% on a delivery-to-factory basis.
The mayor of Calama, Chile, has called for demonstrations against rising crime in the city, with protesters targeting major highways, Calama airport and blocking schools and public transport. The protests and demonstrations that began on April 21 not only prevented mine workers from working in the daytime, but also prevented night shift workers from returning home. The mines affected by the protests and demonstrations included Chuquicamata, Gabriela Mistral, Ministro Hales and Radomiro Tomic, and the key equipment of Codelco mines and infrastructure may also be at risk. SMM understood that the current protests in Chile have limited negative impact on mine production.
A string of mergers and acquisitions will increase the consolidation of copper mines. According to foreign media reports, BHP is going to acquire Oz Mineral for A$9.6 billion, which was supported by the shareholders’ meeting of the latter and approved by the Australian Federal Court. Newmont Mining launched an acquisition offer for Newcrest Mining, valued at A$29.4 billion. In addition, Glencore raised its acquisition offer for Teck Resources by $8.2 billion (the initial figure was $23 billion), which was rejected by Teck Resources. According to SMM research, mines are more inclined to acquire existing projects with controllable risks and mature business amid the increasing interference instead of the greenfield projects facing greater risks and longer investment cycles.
More popular news:
'Bond King' Jeffrey Gundlach Says Sharp Fed Rate Cuts By Year-End Will Push Up Gold Prices
IMF: US Debt Defaults Will Take a Heavy Toll on Global Economy, Global GDP Growth Can Plunge
Goldman Sachs Sees European Gas Prices Tripling, Gives Price Forecast in H2 2023
BofA Sharply Lowers Forecast for Oil Price, Global Oil Consumption in 2023
Takeaways of Warren Buffett and Berkshire Hathaway’s 2023 Annual Meeting
US Treasury Bill Rates Soar to Record High on Debt Ceiling Jitters
No Other Country can Replace China's Manufacturing Industry Including India
Global Manufacturing PMI in April Points to Greater Downward Pressure on Global Economy
SMM Daily Comments (May 5): LME Base Metals Rose across the Board, SHFE Nickel Plunged
A Bull Gold Market Has Just Begun
Copper Shortage Is Irreparable Even after Biggest Mergers and Acquisitions, Here’s Why
