The spot processing fee (TC/RC) for imported copper concentrate in China reached a new historical low last week. After falling below -$150 per ton last week, TC/RC continued to decline as smelters maintained their profitability, even though the processing fee remained negative, they were still able to purchase copper concentrate. The weekly Agios index of smelter purchase TC on July 31 decreased by $0.061 per ton and 6.10 US cents per pound compared to July 24.
The same was true for the trading firm's purchase TC index. In the smelter market, a mining company sold 20,000 tons of Highland Valley copper concentrate at a processing fee of -$220 per ton, with an expected delivery period of September-October. Carmen copper concentrate was sold at an index premium of $20 per ton, with a delivery period of September. Another shipment of clean copper concentrate was also sold at the same premium level, with a delivery period of September-October. Market participants believe that the acceptable fixed-digit processing fee level ranges from -$160 per ton to -$180 per ton. Strong smelter profits have offset the negative impact of the continuous decline in processing fees. Several large smelters expect their profits to increase by 80-120% in the first half of the year. Market analysts predict that in the short term, processing fees will still be under pressure amid the continued tight supply of copper concentrate and healthy smelter profits. In the trading market, one shipment of 20,000 tons of Highland Valley copper concentrate and one shipment of 10,000 tons of Quebrada Blanca copper concentrate were reportedly sold at a TC of approximately -$270 per ton to -$280 per ton, with an expected delivery period of September-October. Recently, the price of sulfuric acid in China has declined somewhat, but market participants believe that there is limited room for further significant drops. The development of the situation in the Middle East remains uncertain, and sulfur costs are expected to remain high, thereby continuing to support the price of sulfuric acid. Mining news: The Argentine Ministry of Economy approved a copper mining project with a total investment of $9.7 billion on July 30. This project has been included in the country's large-scale investment incentive mechanism. Swiss mining company Glencore's copper production in the second quarter increased by 12% to 197,400 tons. Canadian mining company First Quantum Minerals resumed copper concentrate production at the Cobre Panama mine in Panama in the second quarter using inventory ore.
