China smelter group decides not to set Q3 copper processing fee guidance, sources say
By Amy Lv and Lewis Jackson
BEIJING, July 11 (Reuters) - China's top copper smelters opted to not set guidance for a key copper processing charge in the third quarter, sources said, the second time in a row they have done that as the industry grapples with tight concentrate supply.
The decision was made at a Friday meeting of the China Smelters Purchase Team (CSPT), a group of China's 16 largest smelters who are supposed to adhere to the guidance in spot copper concentrate deals, according to four sources with the knowledge of the matter who were not authorised to speak to media.
The decision reflects the exceptional tightness in the copper market, where the fight to get ore has reversed the standard commercial logic and led to a situation where spot fees have been in the negative territory since last December.
And that means smelters pay miners to process ore instead of the other way around.
Chinese smelters agreed treatment and processing charges of $0 per metric ton and 0 cents per pound with Chilean miner Antofagasta ANTO.L during mid-year negotiations last month. Agreeing to process concentrate for no charge was seen as a win for smelters.
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