Thrifty Banker
  • Politics
  • Business
  • World
  • Investing
  • Politics
  • Business
  • World
  • Investing

Thrifty Banker

Investing

Copper Prices Jump as Top Chinese Smelters Agree to Cut Output

by March 16, 2024
March 16, 2024
Copper Prices Jump as Top Chinese Smelters Agree to Cut Output

In a bid to cope with a raw materials shortage and underperforming plants, top copper smelters in China collectively agreed to cut production in a Beijing meeting this week.

Sources with personal knowledge of the matter told Reuters that the amount of cutbacks will rely on each smelter’s individual assessments, as no specific rates or volumes have been imposed.

The news spurred copper prices upward, with the cash contract on the London Metal Exchange closing Friday (March 15) at US$8,790 per metric ton (MT) after beginning the week at the US$8,520 level.

The increase of just over 3 percent took prices for the base metal to heights not seen since last April.

China is the world’s leading refined copper producer and consumer, and its smelters are facing a critical situation, with treatment and refining charges (TC/RCs) having reached single figures. TC/RCs are the fees miners pay smelters to convert copper concentrate to copper cathode, and they tend to fall when copper concentrate supply runs short.

That’s because smelters reduce TC/RCs to be more competitive when less material is available. However, lowering TC/RCs places margin pressure on smelters and can even leave them in the red as they receive lower compensation.

David Wilson, senior commodity strategist at BNP Paribas (OTCQX:BNPQF,EPA:BNP), told Bloomberg the plunge in fees has been driven by the rapid expansion of copper-smelting capacity not only in China, but also in India and Indonesia.

“This has less to do with a lack of mine-supply growth, and more to do with an excess of smelting capacity,” he said. “That overhang of smelting capacity isn’t something that’s going to be particularly helpful for the copper price.”

Until recently, global recession concerns have tempered experts’ short-term forecasts for copper. However, the late 2023 closure of First Quantum Minerals’ (TSX:FM,OTC Pink:FQVLF) Cobre Panama mine, which was a significant producer, has impacted short-term projections, with some market watchers now predicting a potential copper deficit by late 2024.

Copper is used largely for industrial purposes, but its role in the energy transition is beginning to add another layer of demand, particularly from sectors like power generation and electric vehicles. With ambitious climate goals driving renewable energy adoption, the need for copper in infrastructure development is expected to grow substantially.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com
0
FacebookTwitterGoogle +Pinterest
previous post
R3D Secures Additional Funding
next post
Mining Leaders Call on Canada to Support Critical Minerals Industry

Related Posts

Top 5 Canadian Mining Stocks This Week: Orosur...

February 8, 2025

Nuclear Fuels

November 28, 2023

Top Defense Contractors by Market Cap (Updated 2023)

November 3, 2023

Gold Price Update: Q1 2024 in Review

April 16, 2024

FPX Nickel Subsidiary CO2 Lock Corp. Closes $1.1...

October 3, 2023

Helium Evolution Announces Spudding of Joint Well

December 7, 2023

Ionic Rare Earths’ Recycling Technology Will Secure Supply...

October 12, 2023

Appia Announces Outstanding Re-Assayed Diamond Drill Results Including...

February 9, 2024

Lake Resources NLMaiden Ore Reserve Defined at Flagship...

December 20, 2023

What Makes a World-class Silver Deposit? (Updated 2023)

September 21, 2023

    Sign up for our newsletter to receive the latest insights, updates, and exclusive content straight to your inbox! Whether it's industry news, expert advice, or inspiring stories, we bring you valuable information that you won't find anywhere else. Stay connected with us!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Popular

    • 1

      Understanding Lithium Mineralogy from an Investment Perspective

      September 12, 2023
    • 2

      US Capital Global Facilitates $50MM Financing to Accelerate Charbone Hydrogen’s North American Expansion

      June 6, 2025
    • 3

      A GOP operative accused a monastery of voter fraud. Nuns fought back.

      January 3, 2025
    • 4

      Israel confirms it is arming Hamas rivals in operation opposition calls ‘complete madness’

      June 6, 2025
    • 5

      China’s aircraft carriers send message in the open Pacific for the first time – and bigger and more powerful ships are coming

      June 16, 2025
    • 6

      Crypto Market Recap: Strategy Eyes US$1B Raise for Bitcoin Push, UK Regulator Reverses ETN Ban

      June 6, 2025
    • 7

      Top 10 Countries for Natural Gas Production (Updated 2024)

      April 6, 2024

    Categories

    • Business (1,066)
    • Investing (2,102)
    • Politics (2,977)
    • Uncategorized (20)
    • World (3,413)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: thriftybanker.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thriftybanker.com | All Rights Reserved