After London’s LME Week and before Cesco Week in Shanghai, copper miners and smelters are largely locked in annual contract talks.
Accordingly, most spot cargoes being picked up are to cover small shorts or taking advantage of distressed selling opportunities.
The Metal Bulletin spot copper concentrate index moved down $3.30 per tonne and 3.3 cents per lb on last fortnight’s trading to $85.90/8.59 cents on Wednesday November 15.
The drop is less to do with movement in buying levels and more due to increased trader buying while smelters are largely well stocked.
Smelters continue to purchase concentrates between 2017 benchmark terms and $95/9.5 cents, but concluded deals are sparse.
“Many smelters: Japanese, Koreans, Indians, are not in the market. The Chinese of course they are taking a position call at $95/9.5 cents but they have bought what they wanted for this year,” a smelting source told Metal Bulletin.