China copper smelters seek higher spot, term TC/RCs

By Polly Yam

HONG KONG, Dec 16 (Reuters) - Spot treatment and refining charges (TC/RCs) paid to Chinese copper smelters have jumped by 26-48 percent in the past month and by two-thirds from October on increased supply from overseas.

Copper smelters in China, the world's top consumer of the metal, had received TC/RCs of $88.5 per tonne and 8.85 U.S. cents per pound for turning spot imported concentrates into copper, up from $60-$70 and 6-7 cents a month earlier and about $50 in October, traders and smelter officials said.

Rising spot TC/RCs were encouraging Chinese smelters to require higher yearly fees for 2009.

Smelters were seeking charges of $82-$83 and 8.2-8.3 cents with price participations, or combined charges of $85-$90 and 8.5-9.0 cents, nearly double 2008's $47.2 and 4.72 cents, a smelter official said.

The bids have been given to Chile's Escondida mine's majority owner, global miner BHP Billiton (BHP.AX), which have offered charges of $52.5 and 5.25 cents without a price participation, the smelter official said.

Last Updated: December 16, 2008 11:43 Beijing Time