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Chinese smelters, Freeport set copper concs TCs at $80/mt for 2024 term contracts

Major Chinese smelters settled the annual treatment and refining charges (TC/RCs) for 2024 term supply contracts at $80/mt and 8.0 cents/lb, respectively, with the miner Freeport-McMoRan Dec. 1, smelters told S&P Global Commodity Insights Dec. 4.
Freeport-McMoRan was not immediately available for comment Dec. 4.

Major producer Anglo American followed suit and settled with smelters at $80/mt and 8.0 cents/lb for 2024 term contracts, according to a company source.

These are the same levels agreed upon by Chinese smelters and Chilean miner Antofagasta, which represented a fall of $8/mt and 0.8 cents/lb, respectively, from the benchmark set for 2023.

Market sources said that the benchmark for 2024 between smelters and producers would be $80/mt and 8.0 cents/lb, and smelters could focus more on spot procurement after the benchmark settlement.

“Smelters with restocking needs can focus on spot buying after the benchmark settlement as there is no worry that spot prices would impact benchmark negotiations,” a trader said.

More producers started to tender 2024 loading shipments during the week of Dec. 1, and more offers could be expected from traders as a result.

Demand from smelters remains healthy due to supply disruptions, and spot TC/RCs fell significantly since benchmark negotiations began Nov. 13.

Platts assessed clean copper concentrate treatment charges at a one-year low of $70.10/mt CIF China Dec. 1, down 26% from the peak July 31, showed S&P Global data.
Source: Platts

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