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Spot TC/RCs for China rise to USD 70 to USD 81 per tonne

Metal News - Published on Fri, 16 Mar 2018

Image Source: SteelGuru
Platts reported that spot treatment and refining charges for imported copper concentrates for Chinese smelters rose to USD 70 to USD 81 per tonne and 7-8.1 cents/lb last week, up USD 1.50 per tonne and USD 0.15 cents/lb respectively from the week before.

Jiangxi Copper Corp in its weekly copper report said the fees edged higher amid ample supply, with concentrate traders heard offering large volumes. It added that although some Chinese smelters needed to replenish concentrate stocks after the Lunar New Year holiday, the major smelters did not, as the current fees were less than their target of more than USD 80 per tonne.

The producer said the China Smelters Purchase Team was expected to set the floor TC/RCs for the second quarter by end March.

The CSPT, which was set up in November 2003 to jointly negotiate TC/RCs with overseas copper mines, set floor fees of USD 87 per tonne and 8.7 cents/lb for Q1.

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

Shanghai-based Chinese brokerage Huatai Futures in its weekly copper report said the fees were largely stable this week after last week’s rebound.

However a source at another key Chinese copper producer, Tongling Nonferrous Metals, was concerned about rising domestic copper smelting capacity, which in the long term could result in a surplus.

Tongling Deputy General Manager Mr Shi Qi Ding last week told the 2018 National People’s Congress that domestic copper smelting capacity has grown so fast it was likely to result in surplus capacity, exceeding the availability of copper concentrate. However, he added the start of production at his company’s new joint venture copper mine in Ecuador by end 2018 would ensure its concentrate supply.

Source :

Posted By : Rabi Wangkhem on Fri, 16 Mar 2018
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