Traders see tightening Cu concs market as low prices hit mine supply, spur buying

Treatment and refining charges for clean copper concentrates crept lower in the first two weeks of January as some traders built up their books in the expectation that falling copper prices will force miners to cut output and encourage smelters to restock.

The Metal Bulletin Copper Concentrates Index was calculated at $92.70 per dry metric tonne/9.27 cents per lb on Friday January 15, down 3.4% on levels seen at the end of December. The index fell as traders booked spot cargoes in the mid-$80s/8s in private sales and public tenders held during the period, and a small number of sales to smelters were concluded in the $90s/9s. Two trade sources said a parcel of Cerro Verde concentrates had been sold at about $85/8.5, while a tender for two parcels of Escondida held in mid-December was also said to have concluded between $82/8.2 and $85/8.5. Traders were also awaiting the results of tenders for Northparkes and Bisha concentrates at the time the index was published on Friday. Participants in the Northparkes tender said it was likely to conclude in the $80s/8s. While traders were actively purchasing during the period, there were only a...


Mark Burton

Kiki Kang

January 15, 2016

17:31 GMT

London and Shanghai