Here’s an interesting buy… “Global commodity trader Trafigura said it would buy 30 percent of Jinchuan Group’s copper smelter in southern China, the first time a foreign firm has taken a major stake in such a facility in the world’s top consumer of refined copper,” reports Reuters.
“The deal, for an undisclosed amount, comes as the Switzerland-based company looks to get a leg up on international rivals such as Glencore Xstrata and Louis Dreyfus Commodities in doing business in the world’s No.2 economy.”
“The move includes an agreement that traders estimate could secure Trafigura annual sales to the smelter of up to half a million tonnes of copper concentrate, as well as the purchase of 120,000 tonnes of refined metal that it could sell in China or export to Asia.”
“That would increase Trafigura’s sales of copper concentrate to China by a third from about 1.5 million tonnes a year currently, they said.”
In metal price news for copper…
Chinese copper wire saw a 1.0 percent drop on Thursday, February 20, making it the biggest mover of the day. Chinese copper bar fell 0.8 percent on Thursday. The cash price of Chinese copper fell 0.8 percent. The price of Chinese bright copper scrap was unchanged.
The cash price of primary Japanese copper inched up 0.5 percent. The price of US copper producer grade 122 saw a 0.2 percent decline. The price of US copper producer grade 110 weakened by 0.2 percent. The price of US copper producer grade 102 declined 0.2 percent.
On the LME, the primary copper cash price rose 0.1 percent. Also on the LME, the copper 3-month price increased 0.1 percent.