REMINDER
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They may not be used or re-distributed without permission
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DESCRIPTION
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CURRENT RATES
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PREVIOUS RATES
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NOTES
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SPOT TC/RCs FOR CLEAN STANDARD-GRADE CONCENTRATE
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Overall global number
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93-100/9.3-10
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87-97/8.7-9.7
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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.
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Sales to smelters
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97-102/9.7-10.2
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94-99/9.4-9.9
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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
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Sales to traders
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90-95/9.0-9.5
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85-90/8.5-9.0
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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
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RECENT TENDERS
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Antamina (BHP/Glencore/Teck)
Phu Kham (PanAust)
Las Bambas (MMG)
Chapada (Yamana gold)
Centinela (Antofagasta)
Los Pelambres (Antofagasta)
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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
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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
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OTHER CONCENTRATES
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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
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LONG-TERM CONTRACTS
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Annual benchmark TC/RCs for clean standard-grade
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97.35/9.735 in 2016
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107/10.7 in 2015
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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
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BHP Billiton quarterly/half-year TC/RCs for clean standard-grade
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Q2 '16 conclude at 83-85/8.3-8.5
H2'16 deals with Chinese smelters heard at $100/t/10.0
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Q1 '16 at 86-90/8.6-9.0
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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
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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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