A Shandong-based copper smelter, which has been plagued by financial constraints for a long time, recently could not afford to purchase copper concentrates, two sources familiar with the issue told Fastmarkets.
“Its operating rate might be lowered soon,” one of these sources said.
High losses in sulfuric acid sales and copper concentrate TCs at rates that are lower than production costs are overwhelming small and mid-sized copper smelters.
Currently, the price for sulfuric acid in Shandong province is 10-30 yuan ($1.45-4.36) per tonne. This translates into a loss of 80-100 yuan per tonne, compared with the production cost of 110 yuan per tonne.
The copper concentrates TC index, cif Asia Pacific,...