Metals: Copper edges higher as treatment fees deeper in negative signal concentrate shortages
METALS-Copper edges higher as treatment fees deeper in negative signal concentrate shortages Updates prices
Oct 19 (Reuters) - Copper edged higher on Monday amid signs of shortages of copper concentrate, while the end of a strike at a major Chilean mine eased some immediate supply concerns.
Three-month copper on the London Metal Exchange (LME) CMCU3 rose 0.28% to $14,448 a metric ton, while the most-traded November copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 gained 0.29% to 109,770 yuan ($16,430.18) a ton by 0700 GMT.
Chilean miner Antofagasta ANTO.L recently sold copper concentrate from its Centinela mine at a treatment charge of minus $310 a ton, while another tender for material from Los Pelambres yielded charges in the minus $330s, Reuters reported on Friday.
The deeply negative charges mean smelters are continuing to pay miners to process their concentrate, highlighting shortages of the raw material ahead of annual supply contract negotiations for 2027.
Mine disruptions and China's expanding smelting capacity, up more than 70% over the past decade, have worsened concentrate shortages.
Meanwhile, workers at Antofagasta's Centinela mine ratified a new labour agreement, ending a strike that began on October 7. The company said production remained normal during the stoppage.
In top consumer China, the economy expanded 4.5% year-on-year in the third quarter, beating a 4.4% forecast in a Reuters poll, powered by strong exports and factory activity, which offset weakness in demand at home. Fixed-asset investment still fell 7.2% in the first nine months, while property investment slumped 20.6%.
Copper inventories in warehouses monitored by the SHFE CU-SGH-STX, meanwhile, rose 25.9% from the previous week to 73,962 tons as of Friday.
Among other LME metals, aluminium CMAL3 fell 0.22%, zinc CMZN3 rose 0.30%, lead CMPB3 gained 0.13%, nickel CMNI3 climbed 0.99% and tin CMSN3 advanced 0.21%.
On the SHFE, aluminium SAFcv1 rose 0.67%, zinc SZNcv1 gained 0.29%, lead SPBcv1 fell 0.15%, nickel SNIcv1 climbed 1.58% and tin SSNcv1 advanced 0.69%.
($1 = 6.6810 Chinese yuan renminbi)
(Reporting by Dylan Duan and Lewis Jackson; Editing by Jochelle Mendonca and Ronojoy Mazumdar)