Spot copper concentrate TC/RCs down marginally ahead of Chinese holidays: LME Week

Spot trading in the copper concentrate market was inactive in the week to Friday September 29, with Chinese participants in holiday mode ahead of China’s weeklong break for the Mid-Autumn Festival and National Day (September 29-October 6)

Fastmarkets’ copper concentrates treatment charge (TC) index, cif Asia Pacific, was calculated at $87.70 per tonne on Friday, the lowest level since June.

Smelters’ buying level was mainly assessed at the low to mid $90s per tonne, but some participants saw the number below $90 per tonne, with more spot inquiries expected to come in.

Trader sources noted that Chinese smelters were showing increased interest in buying material. The increased demand was coming in part due to smelter expansions, one trader source said.

The trader added that this was leading to some increased buying interest among traders, noting they had seen some buying by traders potentially because they were short of material. One producer source also noted they had seen some traders buying to cover themselves.

The producer source also added that the gap between clean and both complex and blended concentrate was quite wide at the moment, and a number of sources have commented on this growing spread in recent weeks.

In addition, market focus has shifted to the upcoming LME Week in London, to be held during the second week of October. This also contributed to the quiet conditions in the market.

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