BHP Billiton Agrees to Pay 41% More To China Copper Smelters In Processing Fees

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BHP Billiton will “pay a 41 percent rise in copper processing fees to China’s large smelters for the first half of 2014, sources said, showing smelters are in a strong negotiating position as supply of concentrates rises,” reports Reuters.

“The smelters and Anglo-Australian BHP have agreed to treatment and refining charges (TC/RC) of $99 per tonne and 9.9 cents per pound for term concentrate shipments in January to June 2014, two sources at smelters said on Monday.”

“That compares to the $70 and 7 cents the two sides negotiated for shipments in July to December 2013 and is more than the 2014 benchmark rate for full-year shipments.”

In metal price news…

On Monday, December 9, the cash price of Japanese copper fell by 0.8 percent, making it the day’s biggest mover. The price of US copper producer grade 110 saw little change in its price on Monday. The price of US copper producer grade 102 held steady. The price of US copper producer grade 122 saw little movement on Monday.

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Chinese copper prices were mixed for the day. Chinese copper bar prices rose 0.5 percent. The cash price of Chinese copper rose 0.5 percent. The price of Chinese copper wire finished the market day up 0.3 percent per metric ton. The price of Chinese bright copper scrap remained steady.

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After a 0.4 percent increase, the cash price of primary copper finished the day on the LME at $7,111 per metric ton. Also on the LME, the copper 3-month price gained 0.4 percent to finish at $7,110 per metric ton.