Chinese spot imported copper concentrate trade was thin last week, with China Smelters Purchase Team signing a clean ore deal at TC/RCs of $95/mt and 9.5 cents/lb for the fourth quarter shortly before the National Day holidays, CSPT member Jiangxi Copper said in its copper sector report Monday.
CSPT has set Q4 TC/RCs for imported copper concentrates at $95/mt and 9.5cents/lb, up 10.5% from Q3, data from Jiangxi Copper showed.
The producer said last week that Chinese spot TC/RCs for imported copper concentrates had risen to $84-$91/mt and 8.4-9.1 cents/lb, up from $83-$88/mt and 8.3-8.8 cents/lb two weeks previously. No trade took place during the October 6 week due to National Day holidays.
Jiangxi Copper said imported copper concentrate trade was lackluster after the festive season, with a CSPT member signing a deal for an undisclosed volume of clean ore for Q4 at fees of $95/mt and 9.5 cents/lb.
SPOT DEMAND DOWN
TC/RC offers from overseas mines for mainstream clean ores stayed high as Chinese smelters have sufficient concentrate stocks and are preparing for term TC/RC talks for next year, therefore cutting demand for spot concentrates, Jiangxi Copper said.
TC/RCs, fees paid to smelters by mines for converting concentrates into refined copper, are a key source of revenue for smelters.
Chinese market participants echoed Jiangxi Copper's views on weaker spot demand for imported copper concentrates.
Another CSPT member, Tongling Nonferrous Metals, said in its copper sector report Monday that overall demand for imported concentrate turned weaker due to the recent shutdown of some smelters both overseas and in China for annual overhauls.
Following the shutdown of the 300,000 mt/year Jiangsu-based Zhangjiagang United Copper in July-August, losing an estimated 25,000 mt of refined copper output, the 400,000 mt/year Gansu-based Jinchuan Group also shut its copper operations in July-October, losing an estimated 25,000 mt of refined copper, data from the union showed.
CAPACITY COMMISSIONS
Due to new copper smelting projects in China and the likely commissioning of around 500,000 mt/year of new capacity during Q4, thereby boosting demand for concentrate, TC/RCs are likely to come down in the coming months, Tongling said.
China's 2017 national copper concentrate demand is forecast at 6.1 million mt, up from 5.499 million mt last year, with domestic copper concentrate this year seen at 6.15 million mt, up from 5.877 million mt last year, estimates by state-run metals consultancy Beijing Antaike showed.
China is forecast to have a copper concentrate surplus of 50,000 mt in 2017, narrowing from a surplus of 378,000 mt last year, Antaike data showed.
It forecast Chinese copper concentrate output this year at 1.65 million mt, edging up from 1.614 million mt last year, with its copper concentrate imports (25% metal contained) this year forecast at 4.5 million mt, up from imports of 4.263 million mt last year.
