Copper Industry Morning Reading on March 12, 2024
Copper concentrate: On March 8, Chilean state-owned mining company Codelco said that a worker died in an accident at the Radomiro Tomic copper mine in northern Chile. In the afternoon of the same day, the worker suddenly caught fire while operating an mining truck. The mining area where the accident occurred has been suspended. Workers at the mine reportedly blocked access roads to the mine and completely halted production, saying they would hold an indefinite strike. The union said the strike was aimed at drawing attention to "serious safety issues and lack of equipment maintenance" in production. Between 2021 and 2023, Codelco was fined 29 times for seven fatal accidents. Most accidents occur during project construction rather than daily mining operations. In 2023, Radomiro Tomic's copper production will be 315,000 tons.
Electrolytic copper: Spot transactions in the Shanghai market picked up yesterday. On the one hand, copper prices fell. Traders reported that the mood of downstream receiving goods has improved. In addition, the monthly difference fluctuated within a narrow range. Some holders were unwilling to sell goods at low prices, and the spot discount The range continues to narrow. However, inventories in the Shanghai market and Jiangsu market continue to build up, and I learned that there is still an inflow of imported copper during the week, so the pressure on spot premiums to continue to rise is still relatively high. However, I have also talked with some traders and I am still relatively concerned about the market situation after delivery. I am optimistic, so I don't think the premium can continue to decline, and it is expected to stabilize.
Scrap copper: Copper prices have experienced a significant correction, and market enthusiasm has dropped significantly. Upstream traders mainly loaded trucks and delivered goods. After the decline on Friday night, retail investors still maintained the pace of shipments, which also allowed most traders to complete their orders. This also allowed other cargo traders to be cautious in their quotations and replenish their inventory at will. After last week's large purchases, downstream manufacturers have restrained their efforts in purchasing scrap copper raw materials and are waiting for the raw materials to arrive at the factory.
Copper rods: The overall transaction situation of refined copper rods in Guangdong yesterday was still relatively average. Although the drop in copper prices boosted the buying sentiment of some downstream companies, judging from the actual transactions, the single transaction volume of most copper rod companies was only within 100 tons. Only a small number of copper rod companies have zero orders of 200-300 tons to restock due to downstream bargain hunting, but the range is relatively limited.
Yesterday, trading in the North China refined copper rod market did not heat up significantly. Due to the slight increase in the premium and discount of electrolytic copper, the processing fee for refined copper rods was increased by 50 yuan/ton to 500 yuan/ton. Although copper prices fell slightly, it had a boosting effect on market consumption. Limited, end customers maintained on-demand replenishment, and refined copper rod companies reported average transaction performance.
Copper strips: The spot price of copper strips dropped yesterday. Some traders increased their inventory of finished products and the purchase volume increased slightly. However, most of them still mainly purchased for rigid needs. The overall transaction volume did not change much. The current market competition is fierce, and many copper factories are directly engaged in terminal operations. , the price is very low, and there is no profit in trade.
