Chinese copper smelters already required 10 percent higher copper treatment and refining charges (TC/RCs) from last month, due to RMB depreciation and sluggish copper prices, according to the Shanghai Metals Market (SMM), a commodity information provider in China, on Thursday.
The move could cut concentrates which the domestic smelters can buy from the international market. Large smelters in China did not accept to buy spot standard grade concentrates below the TC/RCs of about 90 US dollars per metric ton (tonne) and 9 cents per pound for the third quarter this week. They already bought spot concentrates at TC/RCs of about 92-93 US dollars/tonne and 9.2-9.3 cents/pound for delivery in the fourth quarter.
They were not keen to take deliveries for the current quarter. Global traders offered TC/RCs of 80-85 US dollars/tonne and 8-8.5 cents/pound last month. The smelters were asking TC/RCs of 94-95 US dollars/tonne and 9.4-9.5 cents/pound, prompting some global traders to cut offers, said an executive at an international trading company. Global miners pay TC/RCs to smelters to convert concentrates into refined metal, with the charges deducted from the concentrate sales price, based on copper values on the London Metal Exchange (LME).
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