China’s top copper smelters slash Q3 TC/RCs buying floor amid supply concerns

China’s top copper smelters have slashed the treatment and refining charges (TC/RCs) purchase price floor for the third quarter of 2020 by around 18% from the prior quarter, a source with direct knowledge of the matter told Fastmarkets.

The third-quarter price floor, agreed during an online meeting on Friday July 3, stands at $53 per tonne / 5.3 cents per lb. This compares with a level in the mid-$60s for the second quarter, though no formal guiding price was actually set for April-June.
Fastmarkets’ benchmark copper concentrate TC/RCs index stood at $46.80 per tonne / 4.68 cents per lb on June 26, down from $47.30 per tonne/ 4.73 cents per lb a week earlier and the lowest since the index was launched in June 2013.

“Considering the current scenario, the number looks optimistic. The market today is surely below that number and the third quarter will be probably tighter and the situation in Chile is getting worse in terms of production not improving. The risk of mining disruptions is huge,”...


Anna Xu

July 03, 2020

08:27 GMT