Copper TC/RCs up sharply in June while smelter outages add units to spot market

Copper concentrate treatment and refining charges (TC/RCs) rose sharply in late June, with production disruptions at several Asian smelters give Chinese plants greater buying power.

The Metal Bulletin TC/RC index firmed to $79.8 per tonne/7.98 cents per lb from $77/7.7 cents. Terms have risen over 11% in a month from $71.60/7.16 cents at the end of May.
“Every time you turn around it’s $2.50/0.25 cents higher if you want to sell tonnes,” a concentrates trader said.
Production disruptions at India’s Sterlite Copper, Pasar in the Philippines and Saganoseki in Japan means previously contracted tonnages are being diverted into an already oversupplied spot market.
Sterlite’s Tuticorin Smelter remains sidelined and out of the market.
In the past two weeks Metal Bulletin reported that Glencore’s Pasar will taper production in August and Pan Pacific Copper’s (PPC) Saganoseki will close for an unplanned two-week maintenance period in July, diverting tonnages into the spot market.

But market sellers are finding it difficult...


Archie Hunter

Julian Luk

June 29, 2018

13:36 GMT