Chinese copper concentrate: High sulfuric acid prices curb processing fees Picture
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Last week, the processing/processing fee for copper concentrate in China continued to decline. The increase in domestic sulfuric acid prices further compressed the processing fee levels under the backdrop of tight supply of copper concentrate.
The weekly index for steelmaking plant purchases by Agus on March 13th dropped to -60.20 US dollars/ton and -6.02 US cents/pound, further declining compared to -56.50 US dollars/ton and -5.65 US cents/pound on March 6th. The purchasing index for traders dropped to -114.90 US dollars/ton and -11.49 US cents/pound, lower than the previous -111.20 US dollars/ton and -11.12 US cents/pound.
The weekly average TC/RC index of Argus on March 6th was -83.85 US dollars/ton and -8.385 cents/pound, which dropped to -87.55 US dollars/ton and -8.755 cents/pound on March 13th.
According to market insiders, a major trading company sold over 200,000 tons of copper concentrate to several Chinese smelters at a processing fee ranging from -59 to -63 US dollars per ton. These sales covered long-term contracts and spot deals for the second and third quarters.
This week, two ships concluded spot transactions. Both were scheduled for shipment in April. The transaction prices based on the M+1/5 clause were -63 USD/ton and -64 USD/ton respectively. Additionally, a batch of Las Bambas cargo was sold under the M+1/5 clause at a processing fee of -60 USD/ton. The shipment date was also April. Other negotiation intentions were within the range of -59 to -61 USD/ton.
A batch of 40,000 tons of Carmen concentrate was finalized at a processing fee of approximately -150 USD/ton in the tender by the trader, with the shipment scheduled for April to June.
The purchase of TC by smelters has continued to decline. The reason is that the increase in the price of sulfur has raised the revenue of smelters' by-products, and the sellers have thus lowered their quotations. Recently, the uncertainty in sulfur supply in the Middle East has pushed up the domestic price of sulfur. The factory price in Shandong region rose by 100 yuan/ton on the 12th compared with the previous week, reaching 1,210–1,220 yuan/ton. The prices of sulfur in Guangxi, Guizhou and Yunnan also increased by 50–130 yuan/ton during the week.
Mining Industry News
The Canadian mining company Lundin Mining has reached an agreement to increase its stake in the Caserones copper-molybdenum mine in Chile and acquire a small portion of the nearby Los Helados copper-gold project, in order to strengthen its presence in the emerging Vicuna copper belt.
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Argus has launched a copper concentrate average index to show the average purchase price of TC/RC by smelters and traders, helping market participants better cope with supply-demand imbalances and fulfill regular contracts.
