Chinese smelter expansions, mine strikes bring 2018 TC/RC terms into focus

Chinese copper smelters are on course to ramp up expansions and newly built production later this year and next, bringing fresh demand for copper concentrates to a volatile market.

Major expansions expected in China this year are mostly on track so far, with only one planned project postponed to 2018. Metal Bulletin has learned that a total of around 300,000 tpy of additional copper smelting capacity is going online, though a large part of its impact will actually be felt next year. The expansions are due to take place against a backdrop of volatile copper concentrates supply this year; while expansions are not expected to affect the market for copper concentrates imminently, they could well be a factor in the negotiations for next year’s annual benchmark. Metal Bulletin’s copper concentrates index was $81.80 per tonne and 81.8 cents per lb on June 30, down 1.7% from previously and...

Published

Kiki Kang

Archie Hunter

July 12, 2017

11:08 GMT

Shanghai, London