The demand for copper bullion has experienced a significant surge, driven by the escalating prices of gold and silver. This surge is a direct result of the increasing popularity of copper, zinc, and lead concentrates that contain higher levels of these precious metals, as reported by Fastmarkets.

The London Bullion Market Association (LBMA) revealed that the gold price closed at $2,333.50 per ounce, marking a 13.06% increase since the beginning of the year. Similarly, the silver price closed at $30.31 per ounce, reflecting a substantial 27.25% surge from the start of the year.

The intensification of spot buying competition for copper concentrate at the onset of the year, due to constrained supplies, has led to record-low copper concentrate treatment and refining charges (TC/RCs). These charges represent discounts offered to smelters for the processing of concentrates into refined metal.

Fastmarkets’ calculations showed a noteworthy decline in the weekly copper concentrate TC index in the Asia Pacific region, reaching negative $3 per tonne on May 17. This figure marked the lowest level recorded by Fastmarkets since 2013.

Copper smelters are actively seeking concentrates with high gold and silver content to capitalize on the soaring prices of these precious metals and alleviate raw material supply pressures. The trend of utilizing high gold and silver content concentrates is not limited to copper but extends to zinc and lead concentrate markets as well.

Payment terms are playing a crucial role in negotiations, with suppliers offering more stringent terms for sought-after copper, zinc, and lead concentrates. Payment terms, including the quotation period and payables of gold and silver, are increasingly influencing price discussions among market participants.

The shift towards accepting longer quotation periods and higher payables for gold in copper concentrates signifies the evolving dynamics in the base metals market. This change reflects a strategic response to the current market conditions and the growing importance of payment terms in securing these valuable concentrates.

In conclusion, the surge in copper bullion demand is intricately linked to the rising prices of gold and silver, prompting market participants to adapt their strategies to leverage the opportunities presented by the evolving base metals landscape.