Freeport Resumes Export License, but Indonesian Copper Concentrate Supply Does Little to Help China’s Spot Market [SMM Copper Concentrate Spot Weekly Review]

?View SMM Metal Prices, Data, and Market Analysis[1] ?Subscribe to View Historical Price Trends of SMM Metal Spot[2]             

               On February 14, the SMM Imported Copper Concentrate Index (weekly) was reported at -£8.67/mt, down £5.97/mt from the previous period's -£2.70/mt. The pricing coefficient for 20% grade domestic ore was 93%-95%.

       During the week, the spot market for copper concentrates continued to collapse, and copper concentrate pricing terms further deteriorated. According to SMM, a trader recently sold 10,000 mt of Cerro Verde to a smelter at a low single-digit negative price, with a QP of M+5 and a shipment period in March. Within the month, a trader sold 10,000 mt of copper concentrates at a low single-digit price, with a QP of M+5 and a shipment period in March.

Although the TC for this transaction was relatively favorable, the payable for gold was stringent. A smelter purchased 10,000 mt of clean South American ore from a trader at a mid-single-digit negative processing fee, with a shipment period in April and a QP of M+5. A trader sold 10,000 mt of mixed ore to a buyer at a price close to £0, with a QP of M+6 and a shipment period in March.

A smelter procured 10,000 mt of clean ore with a March shipment period at a mid-single-digit negative price, with a QP of M+4.        On February 12, BHP tendered 10,000 mt of Escondida, with a shipment period in April, a QP of M+3, and a bid deadline of February 17. The Sierra Gorda tender results were announced: the tender for 10,000 mt of Sierra Gorda with a March 2025 shipment period was -£34, while the tender for Sierra Gorda in 2026 was -£15, with 10,000 mt shipped each quarter.

       According to foreign media reports, Freeport McMoRan may resume copper concentrate exports from Indonesia this month under a new export license. Indonesia's Ministry of Trade expressed support last week for Freeport to resume copper concentrate exports.        As of February 14, SMM's nine-port copper concentrate inventory stood at 841,800 mt, down 5,500 mt from the previous period, with the main reduction coming from Jinzhou Port.

This week, Jinzhou Port's copper concentrate inventory decreased by 20,000 mt WoW.    

                                                                                                                 ?View SMM Metal Industry Chain Database[3]

References

1. ^ ?View SMM Metal Prices, Data, and Market Analysis (www.smm.cn)
2. ^ ?Subscribe to View Historical Price Trends of SMM Metal Spot (hq.smm.cn)
3. ^ ?View SMM Metal Industry Chain Database (data-pro.smm.cn)