The Conversation (0)
Reuters Columnist Andy Home suggested that there could be some positive signs yet for copper bulls in 2016. He suggested that their could be hope in unpredictable supply dynamics for copper, stating that the past week has “brought tangible evidence that the supply chain is starting to tighten, very much against consensus expectations.”
Reuters Columnist Andy Home suggested that there could be some positive signs yet for copper bulls in 2016. He suggested that their could be hope in unpredictable supply dynamics for copper, stating that the past week has “brought tangible evidence that the supply chain is starting to tighten, very much against consensus expectations.”
As quoted in the publication:
The evidence comes in the form of the first major 2016 copper concentrates supply deal signed between Chilean miner Antofagasta and Chinese smelter Jiangxi Copper.
Treatment and refining charges have been set at $97.35 and 9.735 cents per lb, which is what Jiangxi will charge for transforming Antofagasta’s concentrates into refined metal.
The level of charges has come as something of a surprise. This year’s were set at $107 and 10.7 cents and Chinese smelters were looking for something similar for next year, not unreasonably given that big new mines are still ramping up with commodity text-book bad timing.
Of course it remains to be seen whether this deal serves as a benchmark for other miners and smelters.
