Mysteel's clean copper concentrate spot treatment charge (TC) index stood at -$176.22/dmt as of August 14, down by $3.3/dmt week on week.
Spot trading activity in the copper concentrate market weakened last week, with spot TCs continuing to decline. Most smelters focused on securing immediate procurement needs, with cautious sentiment. Traders remained firm on offers and showed limited willingness to sell at fixed TCs, generally favoring index-based pricing with deductions, resulting in ongoing negotiations between buyers and sellers.
Source: Mysteel
According to Mysteel's survey, a trader sold 10,000-20,000 tonnes of land-transported copper concentrate for September shipment to a smelter at index minus $20. Another trader sold 10,000 tonnes of clean copper concentrate for September shipment to a smelter at index minus $25/dmt. Meanwhile, Chuquicamata offered 10,000 tonnes of off-spec copper concentrate for November shipment to traders at -$230/dmt.
Indonesia's copper smelting sector faces short-term supply uncertainty after PT Smelting's Gresik smelter suspended operations following a boiler leak on August 8, according to market sources. The smelting facility would remain offline for several weeks to undergo assessment and repairs, with no confirmed restart date. Meanwhile, PT Freeport Indonesia said on August 10 that its Manyar smelter is scheduled to resume production in September as copper concentrate output from the Grasberg mine gradually recovers.
China's average 98% smelting sulfuric acid price stood at Yuan 1,673/tonne on August 14, falling from Yuan 1,699/tonne on August 7, but stayed at relatively elevated levels, continuing complementing copper smelters' losses due to excessively low TCs.
China's sulfuric acid market is expected to maintain a regionally divergent trend this week, with overall prices fluctuating and still facing downward pressure. On the cost side, sulfur prices are expected to remain relatively high with fluctuations, while prices of pyrite and metal ores, including copper, lead and zinc concentrates, are also likely to stay elevated, continuing to provide cost support for sulfuric acid prices. On the supply side, overall operating rates in China are expected to recover slightly this week as facilities that previously underwent maintenance gradually resume full operations. However, the pace of supply recovery will vary by region. On the demand side, although the phosphate fertilizer market remains cautious, operating rates are expected to edge higher, providing some support for sulfuric acid procurement. Demand from emerging sectors such as new energy and fine chemicals remains relatively stable, while traditional chemical industries may continue to face weak demand. Going forward, China's sulfuric acid market is expected to continue showing regional differentiation. Regions with relatively high sulfuric acid prices earlier may face further declines amid pressure from lower-priced supplies and rising local sales pressure. Meanwhile, areas with previously low prices are expected to remain relatively stable, supported by production costs and rigid demand.
Source: Mysteel
Recently, sulfuric acid prices have continued to decline amid weak demand and recovering supply, gradually reducing the contribution to copper smelters' profitability. Some smelters have already increased sulfuric acid output to secure profits. Moving forward, attention should be paid to the risk of a sharper decline in sulfuric acid prices, which could further weigh on copper smelters' profitability.
Written by Mingyuan Wang, wangmingyuan@mysteel.com
