Initial bids for copper concentrate hint at lowest annual TC/RC benchmark since 2012

Copper miners and smelters look set to agree the lowest annual benchmark for concentrate in eight years, according to initial indications for 2020 contracts tabled by both sides.

Discussions for the 2020 annual contract treatment and refining charge (TC/RCs) kicked off during LME Week in late-October and have resumed ahead of Cesco Asia in Shanghai. Miners Antofagasta and Freeport-McMoRan are looking for a number in the $50s per tonne / 5 cents per lb range.

Meanwhile, Chinese and Japanese smelters have said they would deal at $70 / 7 cents, leaving a midpoint of the mid-$60s/6s. The 2012 annual copper concentrate contract settled at $63.50 per tonne / 6.35 cents per lb.


Archie Hunter

Julian Luk

November 14, 2019

15:09 GMT