Argus Media Limited

10/15/2021 | News release | Distributed by Public on 10/15/2021 05:35

China Cu: Concentrate TC/RCs hold firm in slow trade

Argus' copper concentrate treatment and refining charges (TC/RCs) index for smelter purchases held firm at $65.90/t and 6.59¢/lb, unchanged from the previous week in a slow market.

The index has held at this level since the week of 24 September.

"Chinese smelters booked a significant quantity of deliveries for the fourth quarter in the latter part of the previous quarter particularly in September, and then China's 1-7 October Golden Week holiday came, so the market calmed down with a watchful attitude hovering in the market now," a market participant said.

"Major China's copper smelters set the fourth quarter's purchase guidance price for copper concentrates TC/RCs at $70/t and 7¢/Ib [on 29 September]. That indicates they expect to purchase at that level, while copper concentrates producers and traders are not able to accept that high level yet," the participant added.

UK-Australia mining firm Rio Tinto has reduced its 2021 guidance for mined copper to around 500,000t from previous guidance of the lower end of 500,000-550,000t because of potential Covid-19 disruptions and risks around mine plan sequencing following geotechnical issues at the wholly-owned Kennecott mine in the US. This compares with mined copper output of 528,000t in 2020.

Australian resources firm South32 decided to acquire a 45pc stake in Chile's Sierra Gorda copper mine from Japan's Sumitomo Metal Mining and Sumitomo. Polish resources firm KGHM Polska Miedz owns the other 55pc stake.