PHYSICALS FORTNIGHTLY - FastMarkets copper TC/RCs for June 10

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REMINDER

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DESCRIPTION

CURRENT RATES

PREVIOUS RATES

NOTES

SPOT TC/RCs FOR CLEAN STANDARD-GRADE CONCENTRATE

Overall global number

93-100/9.3-10

87-97/8.7-9.7

TC/RCs remain around $100 having risen above the 2016 annual benchmark for the first time this year at the end of May.

Illiquid trading conditions - Asian smelters well covered, Chinese observing the Dragon Boat Festival holiday.

High terms needed to attract spot tonnages.

Traders overloaded with clean concentrate due to lack of complex material for blending.

Average terms could increase upon Chinese return next week.

Sales to smelters

97-102/9.7-10.2

94-99/9.4-9.9

TC/RCs to smelters either side of three-digits as concentrate-heavy traders seek to offload tonnages.

BHP Billiton concludes initial H2 Escondida concentrate supply deals with Chinese smelters at $100 per tonne / 10.0 cents per pound.

Most smelters out of the spot market and well covered until July/Q3.

Chinese, Japanese, Korean, Indian and European smelters out of the market unless terms are enticing.

Birla Copper extended maintenance completed.

Blended or roasted concentrates seen trading at 105-115/10.5-11.5

Sales to traders

90-95/9.0-9.5

85-90/8.5-9.0

Traders and mines eschew tenders in favour of direct spot deals.

Less aggressive bids for clean tonnages due to high availability and inventories; traders long of concentrates.

Availability of high-arsenic concentrate tight due to improved ore grades, DMH roasting and Toromocho sales reduction

Chinese smelters moving further into blending, Chalco still applying for permit

 

 

RECENT TENDERS

Antamina (BHP/Glencore/Teck)

 

 

Phu Kham (PanAust)

 

Las Bambas (MMG)

 

Chapada (Yamana gold)

 

 

Centinela (Antofagasta)

 

Los Pelambres (Antofagasta)

10kt for June delivery

10kt for July/August delivery

 

10kt for June delivery

 

Unknown tonnage and delivery date

 

10kt for June, 10kt for September, 10kt for H1 '16, 10kt for H2 '16 delivery

 

30kt for May, June, July delivery

 

10kt for July delivery

Awarded at 88/8.8

Awarded at 85/8.5

 

Awarded at mid-80s

 

Awarded at mid-80s

 

Super clean, high gold; awarded at high 70s/7s – low 80s/8s for near-term parcels

 

Awarded at low 70s/7s

 

Awarded at high-60s/6s

OTHER CONCENTRATES

Super-clean or high-grade concentrate available at high 70s-low 80s, demand stable for stockpiling and blending purposes; reduced supply of high-arsenic material

 

Blended material sold to Chinese/European smelters around 105-115/10.5-11.5

 

Less high-arsenic material from South America in market. Spot TC/RCs for 1-1.5% arsenic concentrate seen around 120-140/12.0-14.0

LONG-TERM CONTRACTS

Annual benchmark TC/RCs for clean standard-grade

97.35/9.735 in 2016

107/10.7 in 2015

Jiangxi Copper and Freeport agree annual contract benchmark at same level as earlier Jiangxi-Antofagasta deal

New benchmark a 9% drop in annual TC/RCs

Freeport option to ship 20% less volume on annual contracts in favour of spot sales

BHP Billiton quarterly/half-year TC/RCs for clean standard-grade

Q2 '16 conclude at 83-85/8.3-8.5

H2'16 deals with Chinese smelters heard at $100/t/10.0

Q1 '16 at 86-90/8.6-9.0

BHP offers mix of annual and quarterly contracts

Annual contracts at 86.6/8.66 in 2016

H2'16 deals at $100/t/10.0 with Chinese smelters heard for Escondida supply contracts

These treatment and refining charge (TC/RC) assessments are for clean standard-grade concentrate of 27-28-percent copper content, low lead, zinc, bismuth, gold and silver content and less than 0.2% arsenic. Arsenic content for clean standard-grade concentrate imported to China is required to be less than 0.5%. TCs are priced in US dollars per tonne while RCs are priced in US cents per pound.

These rates are nominal indications only, based on contributions from market sources, and should not be construed as actual bids and offers.

(Table compiled by FastMarkets’ Physical reporting team, physicals@fastmarkets.com)

 



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