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China spot TC/RCs plunge to USD 76 to USD 85 per tonne

Metal News - Published on Wed, 10 Jan 2018

Image Source: wsj.net
Platts reported that spot treatment and refining charges for imported concentrate for Chinese smelters plunged to USD 76 to USD 85 per tonne and 7.6-8.5 cents/lb last week, from USD 81 to USD 82/mt and 8.1-8.2 cents/lb in the preceding week. Industry sources in a report said that concentrate sellers have pushed fees down to USD 76-USD 85/mt and 7.6 to 8.5 cents/lb as medium and small Chinese smelters ran out of concentrate stocks, Jiangxi Copper Corp.

It noted that the larger Chinese smelters have sufficient concentrate stocks after importing in the third quarter of last year and are currently in no great need to buy.

Tongling Nonferrous Metals Group, in its monthly copper report, attributed the fall in TC/RCs to tight supply of mined copper and a rise in copper smelting capacity.

In Hubei province, imported concentrate deals were at USD 76-USD 85/mt and 7.6-8.5 cents/lb last week far below the China Smelters Purchase Team’s minimum TC/RCs of USD 87/mt and 8.7 cents/lb set for the first quarter of 2018, according to a commodity report by Chinese brokerage Mailyard Futures on Monday.

The report expected spot fees to remain low till Lunar New Year in mid-February, citing more inquiries for concentrate as some Chinese smelters are faced with depleting concentrate stocks.

TC/RCs, the fees paid to smelters by mines, for converting the concentrate into refined copper, are a key source of revenue for smelters.

China imported 1.78 million tonne of copper ore and concentrate in November, up 1.1% year on year, while imports over January-November rose 2.6% to 15.7 million, data from the General Administration of Customs showed.

China’s mined copper demand this year is forecast at 6.15 million, up 6% from estimated 5.8 million mt in 2017, data from state-run metals consultancy Beijing Antaike showed.

The country’s mined copper imports are forecast at 4.8 million mt in 2018, up 6.7% from an estimated 4.5 million mt last year, while domestic mined copper output is seen at 1.72 million mt, up 4.2% from an estimated 1.65 million mt last year, the agency said.

China is forecast to have a mined copper surplus of 370,000 mt in 2018, compared with a surplus of 350,000 mt last year, Antaike data showed.

Source :

Posted By : Rabi Wangkhem on Wed, 10 Jan 2018
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