U.S. Gulf:
With import demand limited by low domestic contract pricing, sources expected few spot imports to the U.S. Gulf in the near term. Based on recent business into Brazil, price ideas in the Gulf were reported in the $130-$135/mt CFR range, unmoved from the prior report.
Gulf Coast:
Gulf Coast delivered tons were contracted at $85-$110/st DEL for 2021. Sources put the Lower Atlantic market at $90-$110/st DEL.
Midwest:
Midwest values were quoted on par with the Gulf Coast at $85-$110/st DEL.
West Coast:
West Coast contracts for 2021 fulfillment continued to be quoted in the $110-$130/st DEL range.
Brazil:
Brazil-bound material was last reported at $135-$140/mt CFR, unmoved from one week earlier.
China:
Copper smelters worldwide are seeing a sharp drop in treatment and refining charges (TC/RCs), the rate miners pay to smelters for processing raw ore, Reuters reported. Recent spot TC/RCs at China were seen softening to $33.50/mt, the lowest level since October 2010 and off from the China Smelter Purchase Team’s first-quarter $53/mt floor.
Rates were even lower in South America, with a 10,000 mt April tender reportedly awarded below $20/mt. A second recent South American tender was noted at $19/mt.
The falling rates were attributed to tightening copper supply, responsible for pushing pricing to a 10-year high in February. Smelting margins were projected to tighten as a result of the falling TC/RCs, potentially incentivizing reduced metal and sulfuric acid outputs, sources said.