After Half a Year, the Spot TC Index Drops Below Zero Again [SMM Copper Concentrate Spot Weekly Review]

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       On January 24, the SMM Imported Copper Concentrate Index (weekly) was reported at -$2.20/mt, down $5.33/mt from the previous value of $3.13/mt. The pricing coefficient for 20% grade domestic trade ore was 93%-95%.

       During the week, multiple smelters purchased spot copper concentrates for Q1 shipment, leading to a certain degree of "price collapse" in the market. Sellers took the opportunity to lower prices, with terms not only reflecting a reduction in TC values but also showing signs of adjustments in precious metal payables and other commercial terms.

       Recently, several smelters have been actively inquiring with traders to replenish raw materials. On Monday, a major miner closed a tender, with the result being a smelter winning 30,000 mt of standard clean ore at a processing fee of $0, with shipment scheduled for March. During the week, Bisha Copper Mine held a tender for 10,000 mt, targeting traders, with shipment scheduled for March/April. A trader sold 10,000 mt of low gold-silver clean ore to a buyer at a processing fee of $0, with QP set at M+5. Another trader sold 10,000 mt of clean ore to a buyer at nearly $0 processing fee, with QP set at M+5. A smelter purchased 10,000 mt of clean ore from a trader at a low single-digit processing fee, with QP set at M+4 and shipment scheduled for February/March. A trader sold 10,000 mt of bundled ore to a smelter at a processing fee of $0, with QP set at M+5 and shipment scheduled for Q1.

       According to market information, some traders have made changes to the precious metal terms for copper concentrates. For example, some traders have lowered the Ag Payable threshold from 30 grams to 15 grams, while others have increased the Ag Payable rate from the traditional 90% to 92%-93%.

       On January 24, SMM's nine-port copper concentrate inventory stood at 943,000 mt, down 82,800 mt from the previous period, with the main reduction coming from Jinzhou Port. This week, Jinzhou Port's copper concentrate inventory decreased by 48,000 mt WoW.

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