China copper smelters raise Q4 2022 TC/RC floor on concentrate increase
BEIJING, Sept 27 (Reuters) –
China’s top copper smelters increased their floor treatment and refining charges (TC/RCs) for the fourth quarter of 2022 by 32.9% from a year earlier on steady smelting demand amid an expected global increase in concentrate supply.
The floor charges of $93 per tonne and 9.3 cents per pound were set at a meeting of the China Smelters Purchase Team (CSPT) held online on Tuesday, three sources with knowledge of the matter said.
The charges are higher than the $80 per tonne and 8 cents per pound set for the third quarter of 2022, and also up from $70 per tonne and 7 cents per pound set for the fourth quarter of 2021..
Miners pay TC/RCs to smelters to process copper concentrate into refined metal, offsetting the cost of the ore. The charges fall when supply tightens and rise when more concentrate is available.
The members of the CSPT in top copper consumer China, including Jiangxi Copper, Tongling Nonferrous and China Copper, are meant to adhere to the floor when agreeing spot processing deals for imported concentrate. (Reporting by Siyi Liu and Dominique Patton; Editing by Christopher Cushing and Christian Schmollinger)
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