6/18/2023 0 Comments Copper cathode price![]() ![]() On the other, coronavirus outbreaks across parts of China have caused transportation costs to rise and dampened cathode demand and transaction volumes. On one hand, cathode supply has tightened in China as Yanggu Xiangguang has stopped production and Chinese smelters started to export cathodes. Opposing forces are expected to cloud the outlook for currently elevated copper cathode prices, including lower Chinese domestic output and weaker demand due to pandemic measures in pursuit of what the Chinese government has called a dynamic Covid Zero strategy. Outlook mixed for imported cathode premiums "Considering the cost of removing impurities and the difficulties in blending when buying non-standard concentrates, it makes greater sense to just buy clean concentrates," a second smelter in eastern China said.Īs an indication of how the market's preference for clean concentrates has impacted price, the spread between clean material and Antamina B, which has high bismuth and zinc, widened to a $10/mt TC in March from $5/mt TC in January. S&P Global Commodity Insights Metals ApDemand rises for super clean concentrateĪmid the greater availability of blended concentrates and rising copper and gold prices, smelters have also shown a greater preference for clean concentrates with gold content lower than 1 gram and copper content of 22%-25%. ![]() Take our poll: Do you think treatment charges for spot #copper concentrate in #China will rise in Q2? Meanwhile, Indonesian supply to southeastern Europe via the Black Sea has been disrupted by Russia's invasion of Ukraine, and market participants expect the material to be diverted to Asian consumers if the conflict dragged on, tipping the scales toward greater supply. " led to higher-than-usual in-transit inventory levels, which smelters were not able to immediately use," a source at a smelter in eastern China said, explaining their continued buying of spot material despite being well-stocked. These were exacerbated by stringent pandemic controls upon arrival in China, which caused waiting periods for discharging at ports along the Yangtze River to be extended by 3-5 days on top of the usual 10 days before customs clearance. Shipment delays from Las Bambas in Peru and Escondida in Chile, as well as labor shortages impacting the loading of US material, posed challenges in Q1. Logistical disruptions both within and outside of China have led to a rise in in-transit concentrate inventories, although this has not dampened smelter demand for material in the short term. 1, 2021 - producers showed greater preference in selling directly to smelters instead. Traders typically pay a lower TC than smelters, but have been more reluctant to take on physical positions since early Q1 amid an increasing number of prompt shipments and a rising TC.Īs the Clean Copper Concentrate Producer-Trader TC differential sank to minus $1.60/mt on March 24 - the lowest since the assessment was launched on Dec. Smelters were more intent than traders to conclude purchases in the spot market in Q1, as the spread between what the two groups of buyers were willing to pay narrowed. Meanwhile, shipments initially bound for Yanggu Xiangguang will be diverted into the spot market instead. ![]() A higher TC translates into a lower price for the concentrate.Ī road blockade at the Las Bambas mine in Peru was lifted in March, and production at Ivanhoe Mine's Kamoa-Kakula site in the Democratic Republic of Congo is scheduled to ramp up in Q2. 31, 2021 - and is expected to continue rising into Q2 as supply eases. The S&P Global Commodity Insights daily clean copper concentrate treatment charge reached a one-year high March 31 of $79.20/mt CIF China - up 33% from Dec. Offers for clean concentrate also increased in the spot market in Q1 due to unexpected maintenance at major Chinese smelter Yanggu Xiangguang Copper in March. These concentrates need to blended with other concentrates to lower deleterious content in order to meet import regulations by Chinese customs - and as a result of the increase in complex concentrate supply, have seen greater availability in the market. Supply of complex copper concentrates - which have high levels of impurities like arsenic and fluorine - increased in Q1 due to production boosts at Indonesia's Grasberg and Serbia's Timok mines. ![]() Treatment charges for spot copper concentrate in China could continue to rise in the second quarter amid easing supply and as smelters in China show a stronger preference for super clean concentrates in the spot market, market participants said. Receive daily email alerts, subscriber notes & personalize your experience. ![]()
0 Comments
Leave a Reply. |