AuKing Mining Limited’s Post

Shortages in copper concentrate have driven a decline in income for smelters to their lowest levels in a decade, not counting 1.7 million tons per year of new capacity expected to come online this year, putting more pressure on global concentrate supply. In response to these challenges, Chinese smelters, which process half of the world’s mined copper, collectively agreed upon a production cut. The copper market's resilience hinges on efforts to address evolving and increasing demands, while fostering sustainable growth. #CopperMarket https://lnkd.in/efbFaaMG 

Explore how the increasing costs of copper concentrate and an upcoming supply shortage will affect smelters. Learn more at https://lnkd.in/d3rHka9h.

Seeking Alpha: Copper prices pop as China's top smelters agree to production cut Copper prices jumped Wednesday to their highest in seven months in London and hit a nearly two-year peak in China, as Chinese smelters, which process half the world's mined copper, agreed on a joint production cut. China's top copper smelters reached a deal to cut production at some loss-making plants, driven by a drop in income due to a tightness in ore supply caused by mine disruptions and a surge in global smelting capacity. But some analysts see the deal as largely symbolic, since there were no specific rates or volumes set for smelters to cut their production. Continue reading: https://lnkd.in/gfVBygMh #copper #copperprices #basemetals #metalprices #procurement

China’s copper smelters are at a critical juncture after fees for processing imported ore collapsed to single figures, raising focus on whether they will keep resisting pressure for production cuts. https://lnkd.in/dnzJmz2p

China’s copper smelters are at a critical juncture after fees for processing imported ore collapsed to single figures, raising focus on whether they will keep resisting pressure for production cuts. A steep decline in so-called treatment and refining charges has accelerated in March, with copper concentrate trading at levels more than 90% lower in the spot market than six months ago. That means squeezed margins or losses for smelters, and points to a sharp tightening of the market after a series of unexpected mine disruptions. Cargoes of copper concentrate from BHP Group Ltd.’s giant Escondida mine in Chile changed hands recently at terms as low as $12 a metric ton and 1.2 cents a pound to Chinese smelters, and at $3 and 0.3 cents to at least one trader, according to people familiar with the deals. BHP declined to comment. W/ Alfred Cang https://lnkd.in/dA-9R9-g

MetalMiner: Copper MMI: Copper Prices Rise to Highest Level Since April Amid Supply Concern Long-awaited supply tightness has begun to come to fruition in the copper market, and Chinese smelters are now starting to ring the alarm bells on ore supply. Much of this stems from plunging treatment and refining charges, now trending near zero, which continue to force smelters in the country to cut production. Miners pay treatment and refining charges to smelters to process their materials. Higher processing fees indicate higher ore supply, while lower fees indicate a tighter market. Continue reading: https://lnkd.in/eD9fbDh6 #copper #copperprices #basemetals #metalprices #procurement

Processing fees for copper concentrate in China have collapsed to the lowest levels in more than a decade. This typically signals a supply shortage as smelters compete for material. One other consideration is the expansion of smelter capacity over the last several years which has added to capacity. In addition, supply gaps are coming from a few unexpected mine closures adding strain on excess capacity and processing pricing. Whether the processing price collapse is a result of excess capacity or a reduction in supply, it means less production of refined copper which ultimately means a higher price in both processing and underlying spot prices. We also saw this activity in 2020/2021 where copper rallied to + $4.50. #copper #coppermining #investing

Discover the implications of increasing copper concentrate expenses and an imminent supply shortage on smelters. Learn more at https://lnkd.in/eU35TVYD. Perrine Faye Albert Mackenzie William Adams Przemek 🔋 Koralewski

#China's group of top #copper smelters -- China Smelters Purchase Team -- in a bid to stabilize the free-falling copper concentrate TC/RC market called for a joint production cut Jan. 26, triggering mixed market reactions. The meeting also called for CSPT members to set #procurement floor price level at $50/mt and 5 cents/lb for TC and RC, respectively, and not accept side terms such as quotation period and gold payable changes. Read our S&P Global Commodity Insights article to learn more: https://ow.ly/K4eZ50QuXH4

Importing nations of copper ore and concentrate are encountering challenges due to a supply shortage, predominantly triggered by mine closures and protests in Peru and Panama. These factors are worsening the constraints on copper supply. Moreover, they are contributing to market tightness for copper ingots as treatment and refining charges decline sharply, approaching zero. Consequently, smelters in China are compelled to curtail production.