The year 2020 is a relatively tight year for global copper supply and demand.
The Covid-19 outbreak began shortly after the start of the year and has affected major copper producers such as Chile and Peru.
Chile's copper production is expected to rise 0.6% to 5.82 million tons in 2020, while global copper supply is likely to decline 1.2%, mainly from Peru, Australia and Mexico, with Peru falling 14.5% to 2.12 million tons, according to the Chilean Copper Council.
Outbreak of the new champions league in addition to affect the output of copper, copper demand also influence, but in the impact on demand is a bit weak, because the global copper smelting capacity about 40% concentrated in China, and China is affected by the outbreak is far less than Chile, Peru and copper producer, so the market is expected to drop will be bigger than the smelting of copper supply demand in 2020.
According to the global balance sheet of copper concentrate supply and demand, copper concentrate supply and demand is relatively tight in 2020 as a whole, and the problem of tight supply and demand will be alleviated by 2021.
On the current performance of the copper concentrate market, into the fourth quarter, copper concentrate supply and demand tension has been marginal relief.
The CSPT team held the Floor price meeting for the fourth quarter in late September, and decided that the TC/RC Floor price of copper concentrate in the fourth quarter was $58 / ton and 5.8 cents/lb, which was an increase of $5 / ton and 0.5 cents/lb compared with the Floor price in the third quarter.
In general, copper concentrate spot processing fee and CSPT quarterly floor price trend is very close.
Combined with the data that the new production capacity of domestic smelters will significantly slow down in 2021, it is expected that the copper concentrate processing fee will gradually recover in the future.
