We are starting to see the effects… “Buying interest from Indian and Japanese smelters for spot shipments of copper concentrate has picked up in recent weeks on growing jitters that an impasse over Indonesian supply may be drawn out, traders said,” reports Reuters.
“Indonesia in mid-January slapped a new tax regime on exports of copper concentrate as part of a strategy to boost value from its mineral wealth. Export taxes are set rise to 60 percent by the end of 2016, before a complete ban from 2017.”
“Global miners Freeport McMoRan Copper & Gold and Newmont Mining Corp have said the new regulations conflict with contracts they signed with Indonesia that exempted them from new taxes or duties. Both have halted shipments while they negotiate with the government.”
“But with talks stretching out, and bookings for April shipments set to pick up as top refined copper producer China cranks up for its peak second quarter, some smelters are looking to secure their needs, traders said.”
In metal price news for copper…
Prices for Chinese copper bar remained unchanged. The cash price of Chinese copper saw little movement last Friday. The price of Chinese copper wire held steady. The price of Chinese bright copper scrap held steady.
The price of US copper producer grade 122 steadied following two-days of increases. The Japanese copper cash price saw little movement last Friday. After a couple of days of improving prices, the price of US copper producer grade 102 held steady. The price of US copper producer grade 110 ended a two-day climb.
The 3-month price of copper saw little price change last Friday on the LME at $7,118 per metric ton. The primary copper cash price showed little movement last Friday on the LME at $7,155 per metric ton.