On the supply side, Chinese smelters ratcheted up production in Q4. The decline was attributed to the weakness of Yuan against the US dollar, slow demand during winter period, high financing costs and increased supply. 21, 2022, supported by tight domestic supply and scrap shortage, before falling back to a six-month low of $37/mt on Dec. In the metals market, import premiums for copper cathode reached a one-year high of $146/mt on Oct.
"Having said that, it is important to keep an eye on the development of these disruptions." Copper cathode import premiums on roller-coaster It is supported by high stock levels at Chinese copper smelters as well as sufficient concentrate supply under long-term contracts," said Wang Ruilin, senior analyst at S&P Global. However, we do not expect the spot TC to fall significantly due to large concentrate surplus in H1 2023. "The recent disruptions on the mine side have put some downward pressure on spot concentrate TC. Meanwhile, Chile's Quebrada Blanca phase two project, which is expected to export first concentrate shipment in March, might help lift supplies from Q2 onwards. The mine was expected to produce 340,000-350,000 mt of copper in 2022. In addition, the Panama government and First Quantum are yet to reach an agreement on the new contract over Cobre Panama copper mine production, leaving an uncertain market outlook. Peru's road blockade around Las Bambas mine and the recent political turmoil in the country have also added to spot supply concerns this year. Several northern China smelters claimed that they have no spot demand before April and offers of road-transported materials remained abundant.Īnd while near-term supply has been affected by production and transport disruptions in South America, the longer term impact remains difficult to gauge. Demand from large-size smelters will likely be limited, while South American producers are experiencing a seasonal low production period. In Q1, the spot market sentiment is expected to be mixed. Slow demand in Q1 few offers from producers Platts observed that 70% of spot transactions were bought by smelters in Q4, compared to 49% in Q3, S&P Global data showed. S&P Global Commodity Insights Metals January 13, 2023īut smelters' transactions picked up in December due to replenishing needs in the wake of supply issues and as slow discussions of annual term contracts increased demand for spot cargoes. Where do you see the spot benchmark for #copper concentrate treatment charges in Q1, as compared with the settled annual level at $88/mt? Platts recorded a total of 990,000 mt spot transactions in Q4, compared to a total of 1.5 million mt spot transactions in Q3.
Spot transactions plunged in Q4 as smelters shied away from the spot market in the face of high financing costs, year-end inventory control, and expected rise in TC/RCs on the back of slowing demand from smelters. Spot TC/RC fell to one-month low of $83.90/mt and 8.39 cents/lb, respectively on Dec. In addition, spot buying from several Chinese smelters was also heard to have surged late-last year due to sudden production plan changes. Nationwide protests in Peru in December and January also impacted domestic transportation of regional copper concentrates. Spot TC/RC started falling around mid-November last year mainly due to road blockage at Peru's Las Bambas mine and shipment delays from Chile's Escondida copper mine following huge waves at the port. 6, Platts' daily clean copper concentrate TC stood at $82.60/mt. 3, 2022, S&P Global Commodity Insights data showed.
The Platts daily clean copper concentrate treatment charge touched a one-year high of $90.80/mt CIF China Nov. At the same time, China imported 1.2 million mt of copper concentrate from Mongolia, the fourth-largest exporter to China in 2022. Kazakhstan was ranked the third-largest copper concentrates exporter to China in 2022, up from the fifth in 2021. Some Chinese smelters also faced production issues in the fourth quarter of 2022, resulting in high inventories and low spot demand.Īt the same time, ample supply of road-transported concentrates pressured spot sales of standard clean copper concentrates.Ĭhina imported 1.4 million mt of copper concentrate from Kazakhstan during January-November last year, up 81.3% from a year ago.
#Copper cathode price upgrade#
Daye Nonferrous will upgrade 600,000 mt/year production line from March till June, said smelters. Major Japanese smelters will undergo maintenance in the first half of 2023, according to market sources. Receive daily email alerts, subscriber notes & personalize your experience.
0 kommentar(er)
