China smelter group agrees to lower Q1 copper charges
The charges tend to fall when ore supply declines and rise when more concentrate is available.
Chilean copper shipments declined last month in a blow to a nascent recovery at mines that account for more than a quarter of global supply of the metal.
October’s export revenue from copper fell 6.7% from September and 8.8% from a year ago, according to central bank data released Tuesday. While the month-on-month decline can be explained by lower average prices, year-on-year prices were higher. That suggests production was down in October after three straight months of improvements from 2022 levels.
To be sure, monthly export data can move around on shipping schedules as much as supply and demand. But October’s result shines a light back on Chile’s recent run of output disappointments, including setbacks at existing mines and project disruptions.
For the copper market, Chile’s spluttering production recovery may help offset China’s unconvincing and uneven economic rebound.
(By James Attwood)
Comments
Pat Logan
Teck’s QB2 new concentrator will likely add to production in October, when reported. Such production was not reported by Cochilco in Sept. 2023, and was absent in Oct. 2022. Bloomberg needs sharper pencils.