Copper market eyes looser concs supply after Grasberg breakthrough

Treatment and refining charges are pushing back up from four-month lows following the news that copper concentrates from the Grasberg mine in Indonesia will soon start making their way into the Asian market.

The Metal Bulletin Copper Concentrates Index rose to $98.6 per tonne/9.86 cents per lb on Thursday July 31, up $3.5/0.35 cents from the July 15 calculation, as Chinese smelters reported buying above $100/10.
The more aggressive trade bidding that had underpinned the recent move lower also faded following the announcement that PT Freeport Indonesia has struck a deal to restart exports after a six-month halt.
Several trade sources quoted clean copper concentrates market in the mid-$90/9s level, although trading activity slowed down significantly in the latter half of the month.
“We can clearly feel that traders are eager to sell their current stock as now the Indonesia issue has been resolved, TC/RCs may go up further,” a source at a smelter in China told Metal Bulletin.

“The offer price for standard clean concentrates is around $100-105 these days,...


Mark Burton

July 31, 2014

15:25 GMT