Chinese copper smelters, including Jiangxi Copper Co., the nation’s largest producer of the metal, climbed after agreeing to record processing fees with Freeport-McMoRan Inc. for next year, Bloomberg reported.
Jiangxi Copper rose as much as 4.7% to 18.14 yuan in Shanghai trading and Tongling Nonferrous Metals Group Co., China’s second-largest producer, advanced as much as 5.1% in Shenzhen. China’s copper smelters will raise by 16% the processing fees to miners in 2015. Today’s share price gains are due to the record treatment charges, Ma Kai, an analyst with China International Capital Corp., said by telephone today.
Following two days of increases, the cash price of Chinese copper dropped by 1.3% to end at CNY 47,620 ($7,712) per metric ton on Tuesday, December 9. Chinese copper bar prices inched up 1.0% to CNY 47,420 ($7,680) per metric ton. The price of Chinese copper wire fell 0.9% to CNY 46,550 ($7,539) per metric ton. The price of Chinese bright copper scrap showed little movement on Tuesday at CNY 40,500 ($6,559) per metric ton.
The cash price of primary Japanese copper gained 1.1% to finish at JPY 820,000 ($6,796) per metric ton. The price of US copper producer grade 122 weakened by 0.3%, settling at $3.62 per pound. The price of US copper producer grade 110 fell 0.3% to $3.62 per pound. The price of US copper producer grade 102 saw a 0.3% decline to $3.81 per pound.
The copper 3-month price declined 1.1% on the LME to $6,405 per metric ton, after two days of improvement. The cash price of primary copper closed at $6,465 per metric ton. Following a couple days of improvement, the metal’s price weakened by 1.1% on the LME.