Chinese Copper Concentrate: Processing Fees Decline, New Smelting Capacity Boosts Demand

Due to the increased purchasing demand following the commissioning of new smelting capacity, as well as the persistent tightness in global copper concentrate supply, the spot processing fee (TC/RC) for imported copper concentrate in China further declined last week. The weekly Agence France-Presse (AFP) smelter purchase TC index decreased by $10.3 per ton and 1.03 cents per pound on September 18 compared to September 11, and the trader's purchase TC index decreased by $26 per ton and 2.60 cents per pound. In the smelting market, one shipment of 40,000 tons of copper concentrate was sold, including 20,000 tons of clean ore and 20,000 tons of Timok copper concentrate. The transaction price was reportedly a 25-dollar per ton discount to the index. Another 10,000 tons of clean copper concentrate for the fourth quarter was sold at -233 dollars per ton. With the commissioning of new smelting capacity, the spot processing fee is under further pressure. On September 12, Yinghai of China Oil & Chemical Co., Ltd. ignited its first phase project of the new copper smelting plant in Yingkou, Liaoning Province, increasing the annual refined copper production capacity by 300,000 tons. In the trader market, one shipment of 10,000 tons of Escondida copper concentrate was sold at -310 dollars per ton to -301 dollars per ton for shipment in November. Another shipment of 10,000 tons of Antamina A copper concentrate was sold at -340 dollars per ton, also for shipment in November, with the pricing period set as M+2. The third transaction was 10,000 tons of Quebrada Blanca 2 copper concentrate for shipment in December, with the transaction price at -353 dollars per ton, and the pricing period ranging from M+0 to M+4. The mining news: Canadian mining company First Quantum continued to export its copper concentrate produced in Panama last week. The company shipped 38,000 tons of copper concentrate from the closed Cobre Panama copper mine to India. Previously in August, the company had shipped a total of 33,000 tons of copper concentrate to Spain and Bulgaria. The mine is operated by its subsidiary Minera Panama. First Quantum previously stated that there are still about 38 million tons of ore and related materials piled up at the closed mine site.