Platts launches daily China copper TC/RC assessment

Sevens Atelier

01/02/2021 13:02

Feb 1 (Reuters) - Commodity pricing provider S&P Global
Platts launched on Monday a daily assessment of spot treatment
and refining charges (TC/RCs) for clean copper concentrate
supply to top metals consumer China, in a bid to help make the
trade more transparent. 
    Miners or traders pay smelters TC/RCs to process concentrate
into refined metal, offsetting the cost of the ore itself.
    Platts will also provide an outright daily spot price for
clean copper concentrate on a cost, insurance, freight (c.i.f.)
China basis, it said in a statement. It would give differentials
for three concentrate brands from Chile, it added.
    For Monday, the Platts TC/RC assessment was $40 per tonne
and 4 cents per lb. Other companies that assess spot TC/RCs
include Asian Metal, Fastmarkets and SMM. 
    The launch comes as treatment charges in China, as assessed
by Asian Metal  AM-CN-CUCONC , languish at more than eight-year
lows after already tight concentrate supply was exacerbated by
disruption to shipments in Chile, the world's biggest copper
producer, due to high waves.  urn:newsml:reuters.com:*:nL1N2K42J1
    Spot rates are currently well below the 2021 TC/RC annual
benchmark of $59.50 a tonne and 5.95 cents per lb agreed in
December. The benchmark is referenced in supply contacts
worldwide and plays a significant role in determining the
profitability of miners and smelters.  urn:newsml:reuters.com:*:nL1N2IU0S4
    "Robust and transparent prices will be useful references to
the opaque and complex copper market which has experienced
difficult fixed-price annual negotiations over recent years,"
said Ian Dudden, Platts' global pricing director for metals and
agriculture, in the statement.
    The three Chilean concentrate brands Platts will provide
daily differentials for are from Antofagasta PLC's  ANTO.L  Los
Pelambres mine, the Los Bronces mine majority held by Anglo
American PLC  AAL.L  and BHP-led  BHP.AX  Escondida.
    Platts' said its assessments reflect the spot market value
of generic clean copper concentrate of any origin at 1630
Singapore time (0830 GMT) and also take into account copper,
gold and silver futures prices.

 (Reporting by Tom Daly; Editing by Susan Fenton)
 ((tom.daly@thomsonreuters.com; +86 10 5669 2119;))