The surge in precious metal prices, particularly gold and silver, in 2024 has led to a notable increase in the popularity of copper bullion. This trend is driven by the higher levels of gold and silver found in copper, zinc, and lead concentrates, which are becoming more sought after by investors looking to capitalize on the rising value of precious metals.

The London Bullion Market Association (LBMA) reported a significant increase in gold and silver prices, with gold reaching $2,333.50 per ounce and silver hitting $30.31 per ounce by May 24, marking a substantial rise since the beginning of the year. This surge in precious metal prices has intensified the competition for copper concentrate, leading to record-low treatment and refining charges (TC/RCs) as smelters seek to process these concentrates into refined metal.

Copper smelters are actively seeking concentrates with high gold and silver content to take advantage of the soaring prices of these precious metals. The low copper concentrate TCs have prompted smelters to focus on acquiring units containing gold, as the profitability of gold outweighs the lower copper content in these concentrates. This shift in focus is also observed in zinc and lead concentrate markets, where the demand for copper-containing concentrates has increased following the rise in copper prices.

Payment terms have become more stringent for copper, zinc, and lead concentrates due to growing demand and limited availability. Suppliers are now offering tougher payment terms, including longer quotation periods and higher payables for gold and silver, during price negotiations. Smelters are accepting longer quotation periods to prevent their buying levels from dropping too low, with payment terms varying based on the volume of gold contained in the concentrates.

In conclusion, the surge in precious metal prices has sparked a notable shift in focus towards copper bullion, with investors and smelters alike showing increased interest in concentrates with high gold and silver content. This trend is reshaping the base metals market dynamics and influencing payment terms for copper, zinc, and lead concentrates as market participants adapt to the evolving landscape of precious metal prices.