Copper edges higher as treatment fees deeper in negative signal concentrate shortages

By Reuters News

- Copper edged higher on Monday amid signs of shortages of copper concentrate, while the end of a strike at a major Chilean mine eased some immediate supply concerns.

Three-month copper on the London Metal Exchange (LME) rose 0.28% to $14,448 a metric ton, while the most-traded November copper contract on the Shanghai Futures Exchange (SHFE) gained 0.29% to 109,770 yuan ($16,430.18) a ton by 0700 GMT.

Chilean miner Antofagasta ANTO.L recently sold copper concentrate from its Centinela mine at a treatment charge of minus $310 a ton, while another tender for material from Los Pelambres yielded charges in the minus $330s, Reuters reported on Friday.

The deeply negative charges mean smelters are continuing to pay miners to process their concentrate, highlighting shortages of the raw material ahead of annual supply contract negotiations for 2027.

Mine disruptions and China's expanding smelting capacity, up more than 70% over the past decade, have worsened concentrate shortages.

Meanwhile, workers at Antofagasta's Centinela mine ratified a new labour agreement, ending a strike that began on October 7. The company said production remained normal during the stoppage.

In top consumer China, the economy expanded 4.5% year-on-year in the third quarter, beating a 4.4% forecast in a Reuters poll, powered by strong exports and factory activity, which offset weakness in demand at home. Fixed-asset investment still fell 7.2% in the first nine months, while property investment slumped 20.6%.

Copper inventories in warehouses monitored by the SHFE , meanwhile, rose 25.9% from the previous week to 73,962 tons as of Friday.

Among other LME metals, aluminium fell 0.22%, zinc rose 0.30%, lead gained 0.13%, nickel climbed 0.99% and tin advanced 0.21%.

On the SHFE, aluminium rose 0.67%, zinc gained 0.29%, lead fell 0.15%, nickel climbed 1.58% and tin advanced 0.69%.


($1 = 6.6810 Chinese yuan renminbi)

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