Spot copper concs market loosens as contract talks loom

Spot treatment and refining charges for copper concentrates rose by 3% in the first half of September as trade destocking accelerated ahead of the start of annual contractual supply negotiations.

The Metal Bulletin Copper Concentrates Index rose to $93.70 per dry metric tonne and 9.37 cents per lb on September 15, up from $90.8/9.08 on August 28 and at its highest level since mid-April. 
The jump came as traders destocked large volumes of material into China, where smelters were building inventories to cover their requirements through to January, so as to avoid tightening the spot market during contractual negotiations.
Benchmark negotiations traditionally start in October during London Metal Exchange Week, but informal “warm-up” discussions kicked off on Tuesday September 15, as Freeport McMoRan hosted a game of golf in Beijing for its Chinese customers, market sources said.

Members of the China Smelters Purchasing Team (CSPT) were rumoured to have bought about 100,000 dmt of concentrates in the first half of the month, and have now covered most of their requirements for...

Published

Mark Burton

Kiki Kang

September 16, 2015

01:15 GMT

London and Shanghai