DAILY ROUND-UP – FastMarkets on copper TC/RCs, Anglo American and production cuts

A round-up of FastMarkets’ top stories published on January 8.

LME base metals ended a volatile first week of the New Year mixed on the LME after the downturn in global equities ended but worries over China’s economic health remain.

Copper faces major challenges this year but the fundamental situation might not be entirely dire because China has amped up its sector specific stimulus while another round of price-related mining cuts is likely, Bank of America Merrill Lynch (BoA ML) said.

Anglo American’s copper mines are a prime target for a take-over as mining majors look to acquire major assets, SP Angel said in a note on Friday.

Spot copper treatment and refining charges (TC/RCs) have continued to decline this year, reaching four-month lows below $100 – the market has corrected following the usual seasonal fourth-quarter spike.

Copper miner Freeport-McMoRan will meet Chinese smelter Jiangxi Copper next week but the momentum behind its campaign for lower copper treatment and refining charges (TC/RCs) than already agreed for 2016 supply is ebbing amid growing support for numbers signed last month by Antofagasta from other miners including Codelco.

The weakening of the yuan since the start of 2016 may ease the pressure that prompted some Chinese producers to announce output cuts, JP Morgan said.

AIM-listed London-based copper producer Central Asia Metals (CAML) saw a record copper production of 12,071 tonnes in 2015, up 8.4 percent from the previous year, with output expected to rise further to 13,000-14,000 tonnes this year.

Liu Jianping has been appointed as the chairman of the board and non-executive director of Chinalco Mining Corp International (CMCI) effective January 6, after the resignation of previous chairman Zhang Chengzhong.

Will Adams

About Will Adams

William Adams has been involved in the metals markets since 1982 – he has experience in many areas of the market from researching to trading and has worked in London, New York and Tokyo.