Smelters Snap Up Supplies Ahead of the Curve as Mitsubishi RtM Exits China Business [SMM Copper Concentrate Spot Weekly Review]

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       On January 17, the SMM Imported Copper Concentrate Index (weekly) was $3.13/mt, down $1.23/mt from the previous $4.36/mt. The pricing coefficient for domestic trade ore with a grade of 20% was 93%-95%.

       Some smelters began to face raw material shortages, prompting increased inquiries in the spot market. During the week, smelters started replenishing raw material positions and actively purchasing.

       During the week, a smelter purchased container cargo with a December shipment period from a trader at a low processing fee of $10, with a QP of M+4. A smelter purchased 10,000 mt of Taiwanese mixed ore from a trader at a mid-to-high single-digit processing fee, with a QP of M+5 and a February shipment period. For gold content of 5-8 g/mt, the gold Payable was 95%. Another smelter purchased 10,000 mt of Antamina from a trader at a mid-single-digit processing fee, with a QP of M+5 and a March shipment period. A trader sold 10,000 mt of Philippine Carmen copper concentrates to a smelter at a low-to-mid single-digit processing fee, with a shipment period of February/March and a QP of M+5. A trader sold 10,000 mt of Taiwanese mixed ore to a smelter at a mid-to-high single-digit processing fee, with a shipment period of February/March, a QP of M+5, and a gold content of 19-28 g, with a gold Payable of 97.5%. On Friday, a trader offered a package to a smelter at a low single-digit processing fee, with a QP of M+5 and a shipment period of March/April. The pricing threshold for silver dropped from 30 g to 15 g, with a Payable of 97.5% for silver ≥15 g/mt. On Wednesday, BHP initiated a tender, and some smelters increased their bidding efforts to secure a win. The tender results are expected to show a TC of less than $2.

       Mitsubishi Corporation closed its metal trading business in China. Mitsubishi Corporation RtM China Ltd., its trading division in Shanghai, began notifying clients of the closure decision last week and has started terminating existing transactions. The China division will close after resolving outstanding issues, with all foreign trade contracts transferred to other offices.

       As of January 17, SMM's nine-port copper concentrate inventory stood at 1.0258 million mt, up 88,900 mt from the previous period. The main increase came from Qingdao Port, where copper concentrate inventory rose by 85,000 mt WoW.

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