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China's top two smelters sign copper concentrate deals with Antofagasta

Metal News - Published on Tue, 16 Jul 2019

Image Source: Tehran Times
Reuters quoted two sources familiar with the matter as saying that China’s top two copper producers have signed concentrate supply deals with Chilean miner Antofagasta for the first half of 2020. Jiangxi Copper Co and Tongling Nonferrous Metals Group signed the contracts earlier than usual because of concerns about the future supply of copper concentrate, the sources said. Concentrate is partially processed copper ore that is the feedstock used to make refined metal.

Contracts for annual supply are typically not agreed until around the time of the Asia Copper Week conference in Shanghai in November. These early contracts underscore the smelters’ desire to secure concentrate supply as competition for ore increases.

The volume stipulated in the deals is unclear.

That supply tightness has pushed treatment and refining charges (TC/RCs), the amount miners pay to smelters to process copper concentrates into refined metal, lower since the start of 2019. One of the sources put the TC/RCs that Jiangxi and Tongling agreed with Antofagasta under the contracts at USD 64 a tonne and 6.4 cents a pound, while the second source gave a range of USD 64 to USD 70 a tonne and 6.4 to 7 cents a pound.

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Posted By : Ratan Singh on Tue, 16 Jul 2019
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