China's refined copper consumption set to pick up in Q4: sources
China's copper consumption for refined copper is anticipated to pick up soon due to an expected rise in domestic consumption in the fourth quarter, industry sources said Wednesday.
One local trader said: "Copper trade is very quiet due to the LME week held in London this week, putting more traders on the sidelines. Prices are relatively steady at the moment and trade has been thin after the National Day holidays in China in early October." He added that spot copper prices were still supported at above Yuan 67,000 ($8,463)/mt with futures prices receiving strong support at around Yuan 65,000/mt.
"Copper imports are slowly picking up these days as LME prices have recently come down a little and Chinese consumers manage to get some profits via imports. Imports are expected to rebound more in the fourth quarter," the trader said.
A source close to the Chinese producers added: "Copper imports are slightly picking up but market players are still closely watching the LME price moves for direction."
TALKS FOR COPPER TREATMENT/REFINING CHARGES CONTINUE; CHINESE SMELTERS EXPECT NO LESS THAN $100/MT AND 10 CENTS/LB
Meanwhile, local traders said negotiations over copper treatment and refining charges (TC/RCs) of spot imported copper concentrates for next year procurement continue in China and domestic producers are still aiming to achieve no less than $100/mt and 10 cents/lb, repectively. "As far as I understand, talks are still going on and the Chinese are aiming high," he said. "But there has been not much details that we can get so far. But I think the Chinese may be able to lower their expectations a bit for meaningful negotiations."
A source from Beijing Antaike, the state-run nonferrous information provider, said: "Chinese producers are keeping things confidential and no updated news have been heard so far from them."
The eight copper smelters under China Smeltery Purchase Team (CSPT) earlier demanded that TC/RCs of spot imported copper concentrates should not be lower than $100/mt and 10 cents/lb, respectively. They also urged the country's Ministry of Commerce not to issue import permits for contracts with a prices lower than their demanded fees.
The eight CSPT members are Yunnan Copper Group, Jiangxi Copper Group, Tongling Nonferrous Metals Group, Jinchuan Group, Daye Nonferrous Metals Company, Zhongtiaoshan Nonferrous Metals Group, Baiyin Nonferrous Metals Company, and Yantai Penghui Copper Company.
Two trade sources in Japan said they have heard one of the CSPT members procuring copper concentrates of several ten thousand tons from a Western copper mine on a spot basis in July or August of this year, with TC/RC fees set at $70/mt and 7 cents/lb.
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